How Much Can I Borrow?
Taking out a mortgage loan is a big step. Potential
homeowners want to make sure that they are shopping
for a house that it is in their price range. One way
to figure out if you are looking at properties that
fit with your budget is by doing some research even
when you are just at the stage of casually “checking
out” properties online or in the newspaper.
Many web sites offer online mortgage calculators that
will provide some parameters as to around how much you
are qualified to borrow. You will be prompted to enter
information about the mortgage loan you are considering
applying for, such as the duration and the interest
rate. You will also need to enter information into the
mortgage calculator about your credit card debt and
any other monthly payments you make, such as on a car
loan. The tax and insurance costs associated with the
mortgage loan can also be taken into account if available.
Note: Your real estate agent can be a good source for
information about these expenses.
Once these numbers have been entered, the mortgage
calculator will generate a rough estimate of the dollar
amount you can plan to qualify for. Remember, this figure
is just a guideline, not a guarantee that your loan
application will be approved. Many factors influence
the mortgage loan process, including income verification,
your credit history, your employment history and the
loan program under which you are applying.
However, the information provided by a mortgage calculator
is a good way to start thinking about how much you can
reasonably expect to be able to borrow. Remember, an
informed consumer gets the most favorable results.