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Most people have a general idea of how much they feel comfortable spending. It’s equally important to know how much your lender calculates you can afford. With assistance provided by your Crestico Real Estate Agent, you’ll be able to better prepare the many details required during the financing application process.

Evaluate your financial situation as the lenders do. Typically, your total monthly housing costs of mortgage principal and interest payments, property taxes and hazard insurance (PITI) should not exceed 28 percent of your gross monthly income. Or, housing costs plus any outstanding monthly long-term debt should not exceed 36 percent of gross monthly income.

Determine how much your financial institution is willing to lend you. Our Mortgage Calculators and can help you get a good idea of the capital you’ll have to work with, but you should call on your Agent for help during the prequalification process.

Know how much you can afford in monthly payments. Lenders factor in sales price and down payment, but place more importance on how much you can handle monthly.

Become a pre-approved buyer. Pre-approval gives you more buying strength since the lender makes a credit decision and pre-approves you for a certain mortgage amount. You’ll know what price range your lender will approve — and you’ll be in a position to make an offer as soon as you find the right home.

It is important that you obtain a mortgage pre-approval. This is an essential time-saver when you come upon the house you want to buy. Mortgage pre-approval is like securing a loan before you find a house, and it’s real peace of mind to know exactly what you can afford. Contact us today and we will prepare a quote for you from our Partner, American Guardian Home Loans. Just click Get Help! And you will be contacted by one of our agents, eager to assist you in getting into the home of your dreams!