Q: How much can I borrow? How much can I put toward my down payment? What size monthly payment can I afford?
A: There are no black and white answers to these questions. Deciding how much house you can afford is a personal decision. If you plan on a 30-year mortgage, you can probably make a lower down payment and still manage the monthly payments. If you plan on a 15-year mortgage, you’ll probably want to make a larger down payment to keep your monthly payments in line with what you can afford.
Q: How large a down payment can I make?
A: Many buyers look at their cash on hand as their only source for their down payment. But there are many other ways to finance your down payment. One way to fund or partially fund a down payment is by using a gift. Parents, grandparents and other family members are often eager to help by making a cash gift toward the purchase of your home. If you are selling a home, the equity you’ve built up can be applied to your down payment.
Q: What size monthly payment can I afford?
A: First consider what other monthly expenses you have, like car payments, day care and utility bills. Then think about intangible expenses or lifestyle expenses, like dining out, travel and when you’ll buy your next car. Are you willing to curtail or delay some of these expenses in order to afford a larger monthly payment?
Q: How much can I borrow?
A: Find out the answer to this question before you begin your home search. Pinnacle Bank can help you with this! Our mortgage calculator will help you see how your down payment, monthly payment and the amount you borrow are all interrelated.
We can answer any questions you may have about the mortgage process. But the best way we can help is by getting you pre-qualified for a mortgage loan. To get started, simply complete the form below or call us personally schedule an opportunity to meet in more detail about your goals and objectives.