Anna Child Group
It’s easy to find out from your lender or bank how much mortgage you qualify for but what you qualify for may not be what you can truly afford. The bank or lender can’t account for your lifestyle or bills that you may have that don’t show on a credit report. These bills can be classes you or your children take, how much you put away for vacation or retirement, or going out to eat. Some people are really good at budgeting while other view it as an elusive idea they just can’t grasp. I have an easy way for you all to figure out how much you can comfortably afford.
After finding out what you can qualify for in a mortgage, deduct the difference of what you pay now and what your new mortgage payment would be. If you already pay $1700 a month for rent or current loan and the new payment would be $2200, start putting away the extra $500 into your savings each month. If you can live without taking any of that deposit back out each month than you have a clear view that this new payment would be easy for you to afford. You would also rack up more money in savings to help with the costs of buying a new home.
Happy House Hunting!