How does one determine the price range of affordable homes based on the total annual gross income?
Hi Sharon, Speak with a mortgage broker. It is not just your gross income. In determining the amount you will qualify for, they take into account any current debts you have. Your credit rating also affects the interest rate you will qualify for. If there are things that need to be repaired on your credit record, a good mortgage broker can assist you with this, or even building your credit record if you don’t have one yet. From here you want to determine a monthly payment that you are comfortable you can cover and the lender will be able to tell you how much that will buy. Your monthly payment will include: principle, interest, taxes, and insurance. With this under your belt, you will be ready to get a pre-approval letter right away when you see a property you are interested in making an offer on. We are seeing multiple offers on many bank owned or well priced homes. Being ready is your best edge. Then begins the fun part looking for homes in your range. Interview agents. You are about
