There are two answers to the question: How much can I afford for a mortgage?
One answer comes from how much of a mortgage does the mortgage lender say you can afford given current mortgage loan requirements.
The second answer actually comes from you – or at least it should.
Often, what you can technically qualify for when it comes to a mortgage based on mortgage loan requirements is different from what your real budget says you can afford.
Our suggestion is that when you start the mortgage prequalification – pre-approval process you sit down and do a personal budget. Make a real effort to find out what you are spending your money on and what can you afford as well as what are you willing to spend for your mortgage payment. This will give you a clear level or cap to the size of mortgage that you should be trying to get – which means how big of a house should you be shopping for.
If you do not figure out your budget first and you just go to the lender to find out what mortgage payment you qualify for, you may be asking yourself the wrong questions. The wrong questions are like: can I go out to dinner one less time per week or per month, or can I pack my lunch versus going out to lunch. If you find your self having to agree to make sacrifices before you get your mortgage in order to say yes to a mortgage that your lender says you qualify for, you may find yourself resenting or regretting making these sacrifices in the future.
Rather, if you realistically decide what you can afford based on your current spending habits before you go shopping for a mortgage and home then you’ll have a much better sense of what your future will be like when you find a home that matches your criteria versus worrying about making sacrifices.
Use Get Pre Qualified.com’s Mortgage Calculator.