To calculate an estimate of how much house you can afford, utilize our Loan Prequalification Calculator. This tool is designed to give you an idea of how much you may be eligible to borrow for your Jacksonville mortgage loan.
How to Calculate Your Potential Mortgage
Several factors go into determining how much house you can afford. The most important of these are your household income, your monthly debt obligations (such as car loans and student loans) and the amount of money you have set aside for a down payment. If you’re buying a house, you’ll want to feel confident about the monthly payments you’ll be making.
How much Money can I spend on a Home?
Using the Loan Prequalification Calculator, you can get an idea of how much you can afford. All of your monthly expenses are taken into account in order to determine if you can afford a home.
Banks, on the other hand, only take into account your current outstanding debts when determining your ability to repay a loan. If you want to save $1000 a month for retirement, they don’t take that into account.
Our Loan Prequalification Calculator makes it easy to see how taking on mortgage debt will affect your monthly costs and savings.
What is a Debt-To-Income Ratio and how does it Impact my Loan?
Banks use the DTI ratio (debt to income ratio) to determine how much money you can borrow based on how much you owe each month, including the cost of your mortgage, insurance, and property taxes.
Getting Pre-Approved… It’s Something Every Buyer Should Do
- You’ll know what you can afford. Getting pre-approved before you shop is imperative, as it allows you to shop within your price range.
- It gives you negotiating power. Having a pre-approval always puts you ahead of a buyer who doesn’t. This is a game-changer when you’re in a bidding war with others
- It makes your offer more relevant. When the seller knows that your information has been reviewed by a mortgage underwriter, it makes everyone involved more confident — and gives your offer more significance.
- It will help you save, not spend. When you’re in the market for a new home, it’s easy to get caught up in the excitement of making purchases. Having the details on your new home’s interest rate, closing costs and down payment will help you curb your urge to buy outside of your budget.
- You’ll get the keys faster. Getting pre-approved upfront makes everything else move quicker. You’ll close faster, which means you’ll move in faster!
NOTE: Pre-approval does not guarantee a loan. Borrower is still subject to a full underwriting review.
Get a Mortgage Loan in Jacksonville, FL
Please contact one of our experienced Jacksonville mortgage loan representatives right away if you or someone you care about is in need of a Jacksonville mortgage loan. Bayway Mortgage Group has been helping people like you buy their dream homes for more than a decade. Please get in touch with us as soon as possible!