Homebuying June 27 2018

Discovering Your Buying Power

Whether you’re seeking the old-world charm of a rustic chateau or a trendy designer model, you should know what type of home you are eligible to pursue. With good financial sense and the right home loan advice, chances are your dream home may be within your reach. Read more on how you can determine your own buying power and find out how you can increase your chances of qualifying for a home loan.

Look Like a Lender

First things first: Brush up on how your debt affects buying a home. Your assets and obligations define your stance as a serious applicant when you enter an open house. Can you act fast on an offer? Or are you crossing your fingers for your next paycheck to come through? Collect your pay stubs, bank statements, and tax information to review your financial history and credit report BEFORE a mortgage lender does. If you’re worried about a bad score, you should know there are key changes coming to the way credit bureaus view your credit report. If these changes don’t affect you, we offer advice on the best way to structure your saving and spending to improve your buying power.

have you tried the 50/30/20 rule?

Scout the Scope

The listing price of a home doesn’t account for the additional costs that go into a purchase. To truly calculate affordability, consider these home-buying factors:

  • 3–20 percent of the home’s value for down payment (private mortgage insurance is required for any less to protect lenders from losses)
  • 5–3 percent of the home’s value for upkeep and repairs
  • 2–5 percent of the home’s value for closing costs such as your application, appraisal, attorney, and inspections for pests and damage
  • 3–5 months of your mortgage to make timely payments

try one of our mortgage calculators

Break Down the Budget

Taxes, insurances, and HOA fees, oh my! Here are the questions to ask yourself when analyzing your potential monthly payments:

  • What is your annual income? This includes any money outside of your gross income.
  • What are your monthly expenses? Beyond the essentials, are you buried by credit card payments, auto payments, etc.? The ratio of income to debt is of particular interest to mortgage lenders.
  • Over how many years can you spread out your mortgage terms? 15? 30? Consider the commitment.
  • What is your ideal home price? What circumstances would tip the scale?
  • What are your expectations for property tax in terms of dollars and percentage? A financial advisor can adjust accordingly to align with your budget.
  • Do you qualify for loans? How many and how much do you qualify for?
  • Your mortgage loan will accumulate interest. What rate are you comfortable with?

Now ask yourself how much you could you afford for just $25 more a month. What about $50? Or even $100? Does this alter your vision for your dream home? You can personalize a variety of budget scenarios with our mortgage calculators, but an Eagle Loan Officer can help you crunch the numbers for a mortgage estimate that best fits your financial range. Let’s get started and find out more about how you can find your dream home without breaking the bank.

Search Results for query

January 10 2020

How do Interest Rates Affect Purchasing Power?

Purchasing power refers to the price of the home you can afford based on the budget you have available. Naturally, if interest rates start to increase, you will not be able to afford the same home on the same budget. In a nutshell, you will be paying more for...

Read More

December 27 2019

4 Refinancing Myths BUSTED

Don't let common misconceptions keep you away from refinancing your mortgage. Consider the 4 most common myths and why they should be kicked to the curb.

Read More

December 20 2019

Decorating Your Home for the Holidays on a Budget

You don’t have to skip decking your halls this season just because you’re on a budget! The holidays can already be an expensive time for many, so we like finding stress-free and inexpensive ways to get into the holiday spirit. Here are some tips for...

Read More

December 18 2019

Homebuying Hurdle: Debt

Many believe that their amount of debt will be an instant hurdle when qualifying for a home loan. This is not always true. The amount of your debt will not necessarily be a red flag to lenders, but your debt-to-income (DTI) ratio might be. This number is one way...

Read More

December 02 2019

12 Days of Savings

From family meals, travel, gifts, and social outings, the holidays are one of the most expensive times of the year. We have compiled some tips to help you spend mindfully during this holiday season.

Read More

November 27 2019

Market Update: FHFA Announces Loan Limit Increases

The Federal Housing Finance Agency (FHFA) has announced that the conforming loan limits will be increased to $510,400 in 2020

Read More

November 20 2019

Why Interest Rates Aren’t the Only Thing That Matters

Shopping for the lowest rate when looking for a lender could be a detriment to your homebuying experience. There is much more that goes into a positive homebuying experience than the mortgage price tag. If you place a value on communication, timeliness,...

Read More

November 14 2019

Homebuyer Solutions Group Success Story

Marylynn M. and her husband successfully improved their credit scores while enrolled in Eagle Home Mortgage’s Homebuyer Solutions Group (HBSG) program and were able to purchase their dream Lennar Home after graduation. We spoke to HBSG Credit Specialist,...

Read More

November 07 2019

Home Organization Tips to Spark Joy

There is a proven correlation between home clutter and stress. Organizing your abode is a quick and relatively easy way to bring more joy (and extra time) to your life. Here are some home organization tips to help you spark joy!

Read More

12345Last

Mortgage Calculators

Crunch the Numbers With Our Helpful Mortgage Calculators

Payment Calculator

payment calculator

Payment
Calculator

Affordability Calculator

affordability calculator

Affordability
Calculator

Refinance Calculator

refinance calculator

Refinance
Calculator

The Modern Digital Mortgage with a Personal Touch

Paperless. Effortless. Awesomeness TM

Simplify the home financing process with our Digital Mortgage. We'll be here to help navigate you through the entire process.

Get Pre-qualifiedWhat is a Digital Mortgage?