HOW MUCH CAN WE AFFORD TO PAY FOR A HOME?

Buying a home is very exciting. However, it can also be a stressful time and seem overwhelming to the first time buyer. Before making the decision to buy a home, you should make sure it is the right time. Are you financially ready for the responsibility of homeownership?

Take some time to consider your net worth, your current monthly expenses and your amount of total debt. When you go to see a lender about obtaining a mortgage, you will need to know your net worth anyway. Subtract your total liabilities from your total assets to figure out your net worth. Once you figure out your net worth, total debt and monthly expenses, you can estimate how much you can afford to spend for your mortgage payment each month.

A general rule of thumb is that your monthly household expenses (costs such as your mortgage payment, taxes and heating expenses) should be no more than 30% of your gross monthly income. Your must also consider your entire debt obligations. It should not be anymore than 40% of your gross income. Debt will include household costs, other loans, credit card payments and any other debt you may have. Also, when determining how much you can afford to pay for a house, you will need to consider your monthly income, debt and also the interest rates you will pay and the amount of money you can put down on a house. A mortgage consultant and other lending associates can help you to determine the highest monthly payment you can comfortably afford.   I have a number of very capable and experienced Mortgage brokers that I have been dealing with for years and would be happy to arrange to have them come and sit with you to assist in making sure you are pre-approved at very favourable rates.  There is no cost for this help!!

After doing your calculations, you might find that it may be difficult for you to obtain a mortgage. The cost of housing expenses or your debt may exceed the amounts looked favorably upon by lenders. If this is the case, there are things you can do to start working towards improving your chances of being approved for a home loan. You can work to pay off some of your other debts, save more money towards a down payment or consider searching for a house that is of a little lower cost.

IF YOU SIMPLY WANT TO SIT DOWN WITH A FRIENDLY FACE AND BEGIN FINDING THAT FIRST HOME "ANYWHERE" IN THE GTA AT "ANY PRICE POINT", JUST POP ME AN E-MAIL  DIRECTLY AT  TORONTOHOMES@ROGERS.COM  OR CALL ME ON MY MOBILE ANY TIME  (416) 948-8532 OR HAVE MY OFFICE PAGE ME (416) 284-4751  CALL FRED NOW