Knowledge is the Map to Greater Wealth,
Real Estate is the Easiest Path.
Leveraging through Financing will take you on that Path the Quickest!
Financial Resources
and Learning Center
Determining Your Purchasing Power
The Second Step in making a decision to purchase Residential Real Estate is to determine how much you can comfortably afford to pay, both in down payment and monthly Payments. Each individual has a different Comfort Level and unfortunately you are the only one able to make that decision. Once you have determined your purchasing power we will look at the properties available in your range so that you can make an informed decision to proceed to the actual Pre-Approval process. At that time we will provide you with information on the various Financing Options. If you already know your comfort level and have made your decision to purchase, proceed to Buyers Interactive System Step 5.
A General Overview of how lenders look at your finances to determine Your Purchasing Power
Lenders will look at a comparison of your housing and non-housing expenses to your gross income. This is called debt to income ratio. Housing expenses include your mortgage principle, interest, property tax and insurance, commonly called PITI. Non-Housing expenses include any other long term debt such as auto loan, personal or student loan.
Most lenders require a max of 28% to 31% for your
housing expense to income ratio and 36% to 41% for your total debt
expense to income. Both of these ratios include the principle,
interest, property tax and home insurance monthly cost.
Simple, right? (-: The Internet is a wonderful thing. Almost all Financial Institutions have web sites containing calculators which do the computations for you. All you need are your numbers. If you already have a relationship with a lender then it is probably best to use their calculators which are geared to how they operate. If not, then the best overall calculator we have been able to find is on the Fannie Mae Foundation web site.
Click here to go to the calculators on the Fannie Mae Foundation web site.
Once you have made these decisions, proceed to step 3 which will put you in touch with our Human Agents. They are looking forward to helping you. Again you have the options of Calling or Email. Let us know how and when you want to be contacted.
Call us at:
954-566-3225
- Specific
Questions
Use this link for response by email