Finance Your Home

How much home can you afford?

Most people have a general idea of how much they feel comfortable spending. It's equally important to know how much your lender calculates you can afford. With assistance provided by your Cressy & Everett Real Estate sales professional, you'll be able to better prepare the many details required during the financing application process.

Evaluate your financial situation as the lenders do.

Typically, your total monthly housing costs should not exceed 28 percent of your gross monthly income. Or, housing costs plus any outstanding monthly long term debt (car loans, credit card balances, etc.) should not exceed 36 percent of gross monthly income.

Ask how your lender determines the total monthly housing cost figure.

It usually includes your mortgage principal and interest payments, property taxes and hazard insurance.

Determine how much your financial institution is willing to lend you by completing our Mortgage Calculator or calling a Cressy & Everett Real Estate sales professional for help during the pre-qualification process.

Know how much you can afford in monthly payments.

Lenders factor in sales price and down payment, but place more importance on how much you can handle your monthly expenses.

Financial Calculators