How Much Can You Really Afford?

By Bruce on November 26, 2009 9:01 AM in Blog, Mortgage Brokers | | Comments (0)

You're finally ready to buy a home and with interest rates close to historical lows it seems like a good time to dip your toes into the real estate pool. You've been squirreling away money for your down payment, been pre-approved for a mortgage and spend all of your free time scouring the MLS website for your dream house.

The bank says that you can afford a mortgage, but can you really afford as much as you've been pre-approved for?

When you apply for your mortgage the lender takes into account the mortgage payment, cost of heating your house, property taxes and current debt. What they don't take into account is any other cost of living: food, insurance, gas, Internet, or cable television.

In the end, a mortgage broker can help make sure that you're taking on a mortgage for an amount that you - not the bank - are comfortable carrying.