There are a lot of guidelines and rules of thumb when trying to figure out how much home you can afford?  Or how much you can qualify for? You may have heard –

• you can afford a home that costs about 2 ½ time your annual income,
• take your gross monthly income and multiply it by .28 for a maximum monthly home payment,
• take your gross monthly income and multiply it by .36 for a maximum total monthly debt including housing

We recommend that before you begin to look for a home, you meet with a lender to start the preapproval process.  The lender will require key information from you regarding your employment, income and finances.  After the lender has reviewed and verified this information, a preapproval letter will be issued.  The preapproval letter is submitted with the purchase agreement.                                                                    View  a sample mortgage statement

There are many loan programs to choose from and your lender will help you make the best decision, based on the information you’ve provided.                                                                                             Lending Discrimination

Besides the mortgage, there are many other expense calculations to consider with a home purchase – homeowner’s insurance, inspection fee, underwriting fee, origination fee, appraisal fee, survey fee, mortgage insurance, mortgage registration tax, closing fee, credit report, recording fees and title insurance.  Many of these fees are rolled into the closing.  The title company who will actually close your transaction will complete the necessary title work and document all of these expenses.  You are able to choose your title company.

Aquino Homes Real Estate   recommends;