Create a Budget

How much can you afford?

Deciding how much house you can afford is a personal decision. Many factors come into play: How much can I borrow?  How much can I put toward my down payment? What size monthly payment can I afford?

There are no black and white answers to these questions.  They are determined not by what loan size your lender can offer, but from your monthly budget.  If you plan on using a 30 year mortgage, it is possible to make 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 year mortgage, you’ll probably want to make a larger down payment to keep your monthly payments in line with what you can afford.

How large a down payment can I make?

Many buyers look at their cash on hand as their only source for their down payment.  This simply is not the case.

Ways to acquire a down payment:

What size monthly payment can I afford?

When determining what size monthly payment you can afford, you’ll want to consider what other monthly expenses you have.  Tangible expenses such as car payments, day care and utility bills, all play a role in how large a monthly payment you can afford. Don’t forget ongoing repair and upkeep on the place you are buying as well as a potential increase in fuel costs due to an increased commute.

There are also the intangible expenses or lifestyle expenses that you’ll want 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?

»But also consider: Paying mortgage payments versus paying rent is a difference like night and day. For example, every penny you pay in interest is a tax deduction, as well as certain mortgage expenses such as points. Your tax preparer may be able to adjust your tax withholding allowing you to have more usable monthly income, right away.*

How much can I borrow?

This is a question you’ll want to get answered before you begin your home search.   This is something that we are here to help you with.  Our mortgage calculators will help you see how your down payment, monthly payment and the amount you borrow are all related.

We can answer any questions you may have about the mortgage process.  But the best way we can help is by getting you pre-approved for a mortgage loan.  To get started, simply complete the form below to let us know a good time to contact you.  We look forward to helping you buy your dream home.

 *Sunrise Vista Mortgage nor any of its employees are licensed tax professionals. These statements are made based upon our experience with certain clients and do not constitute legal tax advise. Sunrise Vista Mortgage highly recommends that you speak with a fully licensed tax professional for final advice on these matters.