While you’re on the hunt for a real estate agent or broker, it’s important to have the numbers crunched and ready to go.
The main number you need to crunch is how much mortgage you can actually afford monthly.
We’ll help you break that down below!
Calculating Monthly Mortgage Payments
Mortgage Calculator
Google has a side-by-side mortgage calculator and purchase budget. Or you can try MortgageCalculator.com if you want something a little more in depth.
What Numbers to Crunch
Here are a few numbers to have figured out when you’re determining how much mortgage you can afford.
- Household income
- Monthly debts (car loans, student loans, etc.)
- Reserve Fund (A good rule of thumb is to have three months of payments – house payment and other monthly debt payments – in an “emergency fund” or “reserve fund” in case you run into some rainy days.)
- Savings for a down payment
Those will help you get started on the number crunching journey.
Don’t get too overwhelmed on this part. Grab your spouse, a friend, a family member, or a coworker to help — preferably anyone who has been in this situation before who will shoot you straight and be a guide in the process.
And this is something we’re happy to help with as well. We are big believers in getting families into homes they feel great about emotionally — but also will forever feel good about financially. So we’ve got some good measuring tools we’re used to using and we’re happy to just have an open and honest conversation with you.
The good news is – a ton of people have walked this road before you. You’re in good company!