How your mortgage lender may give you the wrong price range
Your mortgage lender may tell you that you can afford a home in a certain price range, but they decide this based on evaluating your debt to income ratio within their guidelines. Since all your expenses are left out of the preapproval process you may be told you can afford a more expensive home than you truly can. For example, if you have 4 kids living at home, you may have more expenses than a family with no kids living at home.
Adding up your monthly expenses will help you determine what your monthly mortgage payment should be. When calculating your expenses, don’t forget any of these often-overlooked categories:
Want more homebuying advice? Catalyst Home Team is a great place for homebuyer education and to help you gauge how ready you are to buy a home. Meeting with one of our team members will give you a vital head start in the home buying journey, saving you valuable time and money. Contact us to set up an appointment today!