How Much Can I Afford?
One of the first steps in the buying process is determining your buying power. Knowing what you can afford and choosing the best financing in advance saves you time and enables you to submit a strong, competitive offer on your home.
Before you go out looking for a home, you can get an idea of what you can afford by using our HOME FINANCING CALCULATORS. These tools will help you estimate how much mortgage you can afford.
The Benefits of Equity
Equity is the principal part of your monthly payment that you can use as a down payment on a new home, or collateral for a home equity loan. You can use a home equity loan to finance home improvements, a child's college tuition, or a new car.
As a homeowner, when filing your taxes you can deduct the interest portion of your monthly payment, and that can mean big savings. You can deduct your property taxes, too.
So look at what YOUR MONTHLY MORTGAGE PAYMENT will actually be, taking your tax breaks into consideration. You may find out it's about the same as-or sometimes even less-than a rent payment!
Pre-Qualification vs Pre-Approval
Pre-qualification is a guesstimate of how much you could afford. But with a PRE-APPROVAL, your getting your mortgage approved prior to going out and looking for a new home. Your loan officer will show you which items you should bring to apply so neither of you will need to wait for various written income, asset and liability information. You could get a loan decision in just days.