Determine how much your financial institution is willing to lend you.  Ask your Real Estate Broker for help during the prequalification process with regards to the process, as well as suggestions on credible, trustworthy Mortgage Brokers in the area.

Most people have a general idea of how much they feel comfortable spending.  It's equally important how much the lender calculates you can afford.  Your Advantage Real Estate Network Broker can help you to organize the many details required during the financing application process.

Evaluate your financial situation as the lenders do.  Ask how your lender determines the total monthly housing cost figure.  It usually includes your mortgage Principal and Interest payments, property Taxes and hazard Insurance (PITI). Typically, your total monthly housing costs (PITI) should not exceed 28 percent of your gross monthly income.  Or, housing costs plus any outstanding monthly long-term debt should not exceed 36 percent of gross monthly income.

You will want to know how much you can afford in monthly payments.  Lenders factor in sales price and down payment, but place more importance on how much you can handle monthly.

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