How much house can you afford?Posted On: September 2011
ASK AN ILLINOIS LOAN OFFICER, WITH JOHN FOLAN
Editor: Tiffany Brewington
How much house can you afford?
Question: I'm a first-time homebuyer in Illinois. How much house can I be preapproved for?
Answer: Start by adding up all of your minimum monthly payments for your revolving debt. This includes student loans, credit cards, car payments, homeowner’s association fees, and other mortgages including principle, interest, taxes, and insurance, if applicable. (This does not include items such as utility bills, rent payments, or cell phone bills). Now, take your gross monthly income, divide it by two, and subtract all of the revolving debt from that number. The number that is left is basically how much additional debt you could be approved for each month in the form of a mortgage.
John Folan is an Illinois Licensed Mortgage Broker at NorthPoint Lending Group, Inc. in Downer’s Grove, Illinois. Have a mortgage question? Please write to firstname.lastname@example.org
Posted On: September 2011
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