How to Get Pre-Qualified
How Much Can I Afford?
Deciding how much house you can afford is a personal decision. Many factors come into play. How much can I put toward my down payment? What size monthly payment can I afford? How much can I borrow?
There are no black and white answers to these questions. It's a matter of give-and-take. If you plan on a 30-year mortgage, you can put down a lower down payment (or perhaps no down payment at all) and still manage the monthly payments. If, on the other hand, you plan on a 15-yearr mortgage, you'll probably want to make a larger down payment to keep your monthly payments in line with what you can afford.
Our mortgage calculators will help you see how your down payment, monthly payment and the amount you borrow are all related. Also review our various loan products to see what loan options are available to you and which may be the best fit for your needs.
Have questions? We're always here for you: (512) 916-9955 or email us anytime.
How Large Does My Down Payment Have to Be?
Many buyers look at their savings as their only source for their down payment. There are other possible sources..
Another way to fund or partially fund a down payment is by using a gift from a family member. Parents, grandparents and other family members are often happy to help by making a cash gift toward the purchase of your home.
If you are selling a home, the equity you've built up can be applied towards the down payment for your next home. Another way to access the equity without selling your property is a cash- out refinance, a home equity loan or a home equity line of credit.
These are not your only options. We can help you explore all your down payment options, including low down payment and 100% financing options that might be right for you.
What Will My Monthly Payment Look Like?
When determining the amount of monthly payment you can afford, you'll want to consider your monthly expenses such as car payments, day care and utility bills. These expenses all play a role in how large a monthly payment you can afford. Your required minimum monthly payments, including your full mortgage payment with property taxes and insurance, compared to your qualifying monthly income, determines your debt-to-income ratio, or DTI. The lower your DTI, the more comfortable you will be covering your monthly expenses.
There are also the intangible or lifestyle expenses that you will need to consider. Things such as dining out, travel and when you buy your next car can effect how much you can afford. Are you willing to curtail or delay some of these expenses in order to afford a larger monthly payment?
How Much Can I Borrow?
This is a question you want to get answered before you begin your home search. The answer will depend on your credit and employment history and your income, assets and liabilities. Analyzing this information is what we do every day. The pre-qualification process is easy. To get pre-qualified, simply complete the Loan Quote Request or give us a call at (512) 916-9955. We are looking forward to helping you buy your next home.