How Much Can I Borrow?
Keys to Affordability
"How much can I borrow?"
Sounds like a simple question, doesn't it? But like many things, it's not quite as simple as it seems ...
Being a Chicagoland Mortgage Lender, I obviously get asked this question a lot. Most times people expect an answer will be provided fairly quickly and easily.
But to answer this question, I must first ask and then receive answers to a series of key questions. That series of questions typically include this important one ...
"Have you narrowed your search to one specific home?"
Wonder why that question's so important?
Real Estate Taxes and HOA Fees.
Real Estate Taxes greatly influence the monthly escrow payment attached to any property. Same thing goes for those homes that have HOA Fees (Home Owner Association Fees) that accompany the property.
It's a simple fact: Raise Taxes and HOA Fees (when applicable) and a Borrower's borrowing power drops. In reverse, lower Taxes and HOA Fees means a Borrower can typically incur more mortgage debt.
This fact must be kept in mind when Buyers and their agents are considering homes for viewing and purchase. Property Taxes and HOA Fees can throw a wrench into the purchase plans of hopeful Buyers. And have.
That's why potential Buyers asking me the question, "How much can I borrow?" can expect to have a conversation regarding Property Taxes and HOA Fees ... and the influence they each have on their ultimate borrowing power.
This is an important conversation to have. One that should also involve your agent ... and be held prior to your viewing of homes.
Doing so is wise for many reasons, but none are so important as the fact that it eliminates the risk of your falling in love with a home that you can't afford to buy.
Sometimes it's the simple things that are the most important ...
* Hoping to buy a home in the greater Chicagoland area? Contact me today. I'll put my 37 years of mortgage experience and expertise hard to work on your behalf.
I can be easily found at:
Mortgage Lender - NMLS #216987 - IL Lic. #0006220 - WI Licensed
American Portfolio Mortgage Corp.
Gene Mundt, Mortgage Lender, a Lender with 37 years of mortgage experience, will offer you exemplary mortgage service and advice when seeking: Conventional, FHA, VA, Jumbo, USDA, and Portfolio Loans in Chicago and the greater Chicagoland region, including: The Lincoln-Way Area, Will County, (New Lenox, Frankfort, Mokena, Manhattan, Joliet, Shorewood, Crest Hill, Plainfield, Bolingbrook, Romeoville, Naperville, etc.), DuPage County, the City of Chicago, Cook County, and elsewhere within IL.
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