Where Are You Now? (Part 3): What Can I Afford?
Figuring out what you can afford before beginning the home search can prevent a lot of heartache and confusion down the road. To ease this process, lenders have a tried-and-true method they use to figure out your target house price should be by looking at the information you give them. Here are several things the lender will look at before determining your mortgage payment and the value of your house: 1. Credit history: As we mentioned in a previous post, banks want to make sure you have a solid repayment history. The better your credit history and score, the better loans become available. For more information, visit our previous post on credit history and scores . 2. Income: When looking at this, banks want to see that you have a steady income; ideally one that you have had for a long period of time. This doesn’t necessarily mean that if you have recently changed jobs that the bank will not understand, it just makes it a bit more difficult. As expected, if you are ...
