If you’re like most Americans, the question isn’t, “Am I going to finance my new home?
” But rather, “What mortgage payment can I afford?
” Before you begin hunting for a new house, there are many factors to consider. Things like credit score, debt-to-income ratio and down payment requirements all affect how much you’ll be able to borrow.
The home loan industry now has guidelines in place that assist individuals in determining the amount of mortgage they should be able to borrow and repay. The new Qualified Mortgage (QM) rule states that your maximum monthly mortgage payment can be no more than 43% of your monthly gross income. These “qualified” mortgages are considered safe by the Consumer Financial Protection Bureau because they fall within established, good borrowing and lending practices.
At United Heritage, we want to make sure you can comfortably manage the mortgage we finance. The first step is to review your finances and determine if moving into a new home is feasible. Nobody knows your spending habits better than you. During this process, you should consider the increase (or decrease) in monthly utility bills, HOA dues, annual taxes or hazard insurance that you may incur with a new home. For example, if you are moving into a larger home, these monthly costs may increase significantly. Also, consider any upcoming major expenses that may affect your debt-to-income ratio (e.g. auto purchase, medical bills, college expenses, wedding, etc.). UHCU offers calculators that can help you estimate if you qualify as a borrower, what your monthly mortgage payment might be and how much you’ll be able to borrow. UHCU’s local loan specialists are also available to assist you in calculating your approved mortgage loan amount.
Visit our Mortgage Loans page
to learn more about UHCU mortgage loans or submit a free, convenient online mortgage loan application.