Zillow Advice: Buying Process - How do you find out, how much you can afford?

This topic makes me sick ...

Tue, 31 Mar 2009 12:40:00 GMT

This topic makes me sick to my stomach. Always has and always will. Back in 1995 Bank of America told me what I could afford after asking and reviewing a few simple questions. Fortunately I had a great personal relationship with the loan officer and when I let, "You're effing nuts" slip, only my wife was embarrased. You see, not once was I asked how man children we had or what my utilities might actually cost each month. These and other expenses have always been neglected in the qualification process and like Roberto stated above, qualification is far different than what can be afforded. Simple mathematical formulas should never be used in determinng affordability. I was not willing to sacrifice our family vacations, dinners out or any lifestyle related expense for the sake of owning a more expensive home and shame on those who will or the mortgage brokers and realtors who fail to see the whole picture.

How much you're paying in ...

Tue, 31 Mar 2009 11:22:00 GMT

How much you're paying in rent + whatever is going explicitly into a down payment fund per month - 5% for incidental costs associated with owning. That's how much you can afford.

try to avoid having more ...

Tue, 31 Mar 2009 08:56:00 GMT

try to avoid having more than 30% of your monthly income going out the door for debt(incl mort, car and credit). 20-25% is even better.

Lenders tend to recommend ...

Tue, 31 Mar 2009 04:09:00 GMT

Lenders tend to recommend that a persons house payment should be not more than 30 % of household income.There are some other complicated formulas. Basically take your net and divide it by 33% and that would give you a general idea where to start looking. Also your credit rateing will have an effect on how much home you will be able to get for your money.

Talk to your Financial Advisor ...

Fri, 27 Mar 2009 03:01:00 GMT

Talk to your Financial Advisor first then talk to your mortgage professional.
Remeber just because the bank will qualify you for the loan still does not mean you can afford it.

Good Luck.

why do so many agents say ...

Fri, 27 Mar 2009 01:27:00 GMT

why do so many agents say talk to a mortgage broker???

are you guys stupid? or just unable to read???

the question was, how much mortgage payment can you
AFFORD... not how much you can be qualified for... they are different questions...

only YOU can decide how much you can afford.

spam nonsense when a smarmy ...

Fri, 27 Mar 2009 01:25:00 GMT

spam nonsense when a smarmy realtor asks a quesiton just to answer it himself...

Try this calculator: ...

Fri, 27 Mar 2009 00:14:00 GMT

Try this calculator: http://www.zillow.com/mortgage/calculator/How-much-can-I-afford.htm

Could I trouble you to tell ...

Thu, 26 Mar 2009 23:21:00 GMT

Could I trouble you to tell me why so many agents create threads that ask a question which they then answer? This mystery is the subject of much debate (and mirth)....It is such a peculiar practice, did some RE guru suggest it?

I would suggest you seek ...

Thu, 26 Mar 2009 23:07:00 GMT

I would suggest you seek out a LOCAL and reputable mortgage man. Talk to people you know. There is nothing better than a good referral. Typically in this day and age, you can spend up to 41% of your total gross income for your TOTAL debt load ... which would include any debts you have plus your monthly mortgage payment. Instructions are confusing so see a local mortgage person. Once they give you a monthly number, then it is for YOU to decide if it is comfortable for you. You need not go the limit. I always recommend to my buyers that they "back off" that number to make the payments more comfortable. What has gotten this country into trouble is that too many people wanted more than they could realistically afford!