How Much Can I Borrow? How Much Mortgage Can I Afford?
“How much would the mortgage be on this property?” That’s one of the most common questions I get from those looking to make a home purchase.
“How much of a mortgage can I afford?” “How much salary is needed to afford a $1 million dollar home?” “How much can I borrow?” “How much house can I afford with a 200k salary?”
Many factors come into play when buying a home. The home price is the obvious one (and the one factor buyers focus on first). However, just as important is the interest rate you secure at the time of closing your escrow on your new home. The most accurate way to learn the answers to these questions is to get Pre-Approved (not pre-qualified).
However, you can get a sense of what you can afford and what a monthly payment would be from this simple cheat sheet. This was kindly put together by Simon Atik of Guaranteed Rate Affinity.
Guaranteed Rate is a technology-forward mortgage lender. They live by their tag line of "Love Your Next Mortgage.” Guaranteed Rate strives to customize mortgages based on home buyer needs. This is in contrast to the typical template style format of most lenders.
Simon put together the linked cheat sheet to give home buyers a sense of what a monthly mortgage payment could be. Additionally it gives buyers a sense of their maximum loan amounts based on their annual income.
Maximum Loan Amounts
While this cheat sheet is a very handy tool as you embark on becoming a homeowner, keep in mind other factors will come into play for the final loan amount and payments. Credit score and monthly debt (things like credit card and car payments) are big factors. The amount of your downpayment will refine these estimates and determine your borrowing power.
My advice to all home shoppers is to go through Pre-Approval first. Not only will this refine your possibilities, it will supply you with a letter of Pre-Approval, something 99% of all home seller require before accepting your offer.
Waiting to go through pre-approval after you find that perfect forever home will risk you losing that home. This is due to the fast pace of how homes sell in Pasadena and the Los Angeles area.
Don’t let the time it takes for pre-approval stand in the way of you getting your dream home.
To start the Pre-Approval process, Simon Atik can be reached at:
Simon Atik
VP of Mortgage Lending
Guaranteed Rate Affinity
310-434-1735
Simon.Atik@GRArate.com
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Michael Robleto
REALTOR®-Compass Real Estate
213-595-4720
Michael Robleto is a Pasadena based REALTOR® with Compass Real Estate. His analytical and open approach to sales and representation have served his clients well in his twenty years of sales experience. Michael is a staunch homeowner advocate that blends compassion with a highly advanced technology-driven approach to the buying and selling of real estate in and around Los Angeles. His client accolades of insight, integrity and hard work support the fact that he is not your average agent.
Michael leverages his personal passion for historic architecture to provide his clients the unknown insight on the pros and cons of older homes. Michael, a California native, grew up in an older Bungalow home and has spent 23 years in Southern California admiring the unique architecture of the region. He often writes on homeownership strategy, historic residential architecture and Pasadena related topics which can be found on Facebook, YouTube, Twitter and Instagram under the common profile name of his blog; BungalowAgent or at www.BunaglowAgent.com/blog.
Michael is a committee member and frequent volunteer for the preservation efforts of Pasadena Heritage as well as a supporter of the Five Acres center for children.
What Makes Compass Different?
Compass is a real estate company born out of technology. Compass believes that an empowered, supported agent with accurate data and invaluable tools is the only way to cater to the needs of a consumer before, during and after a transaction. Compass embraces a culture of collaboration, kindness, and professionalism. Unlike most brokerages, every agent of Compass has the ability to turn to any agent in our national network for help, advice or guidance. Crowdsourced real estate intelligence is powerful for the consumer. While the company is not obsessed with sales figures, we ARE obsessed with longterm relationships and doing what is in the best interests of our consumers.
A privately owned and well-funded company with zero debt, Compass prides itself in time-saving tools for agents and real estate sellers and buyers. The end result is a smoother and happier real estate experience. Compass: The Real Estate Technology of the Future.