Aurora Mortgage Information

Can You Afford A Home?

To find out what house you can afford discuss with your GSF Mortgage professional and we can help you pre-qualify for a loan. This will let you know how much you can afford and boost your bargaining power with home sellers.

Lenders like GSF Mortgage base how much you can afford on a variety of factors:

Monthly Payments.?Many lenders require your total mortgage payment, including principal, interest, property taxes and property insurance to be no more than 28%-33% of your gross monthly income depending on your down payment.

Debts.?Lenders generally require your monthly ownership costs (mortgage interest, principal, property taxes and insurance) plus other monthly debt payments (car loan, student loan, credit card payments), to be no more than 36%-38% of your gross monthly income.

Credit Record.?Your credit rating will be reviewed and a credit score will be based on these numbers. A credit score is a number that helps lenders and others predict how likely you are to make your credit payments on time.

Employment record.?Lenders will look more favorably on someone who has had the same job or occupation for the past several years than someone who has changed fields frequently.

If you are self-employed or work on a commission, some lenders will require more financial documentation, including personal and business tax returns, balance sheet, and profit-and-loss statements. 

If you would like to determine how much home you can afford, give me a call at GSF Mortgage today!