Today, homeownership in the United States has skyrocketed, primarily due to so many great programs being established for first time buyers. In addition to being your home, your place of security, a home is also a great financial investment, your plan for the future. One of the first steps when buying your first home is to determine just how much you can afford. With this information, you will know what type of houses to look at.
This determination can be done in one of two ways. First, you could meet with a reputable lender, having him or her run through your financials to see if you would qualify for a first time home and if so, how much. Second, you could use any number of online mortgage calculators, making this determination on your own. At the end of this article are a couple of websites where these calculators are found to get you started.
The formula used to determine the amount of money you can afford is quite simple. It involves debt versus income ratio, which means you would look at the amount of bills going out every month compared to the amount of incoming money. In addition to your regular paycheck, other income can be considered in this calculation to include child support, alimony, set bonuses, and so on. Therefore, be sure when looking at your income, these things are also included.
Some great websites with calculators to help you determine what you can and cannot afford are listed below. Remember, with this information, you can start the exciting process of looking for a home and getting qualified so soon, you will be eating dinner in your very own home.
https://www.fastfind.com/Mortgage/Refinance.aspx?ADID=111111110363&Artcode=M-728×90-Refi-TL-R&scode=M-728×90-Refi-TL-R
http://www.mortgage-calc.com/
http://www.bankrate.com/brm/mortgage-calculator.asp
http://mortgages.interest.com/content/calculators/index.asp