Finance Your Home

Northern Indiana & SW Michigan Home Financing Options

How Much Home Can You Afford?

Most people have a general idea of how much they feel comfortable spending. It's equally important to know how much your lender calculates you can afford. With assistance provided by your Cressy & Everett Real Estate sales professional, you'll be able to better prepare the many details required during the financing application process.

Evaluate Your Financial Situation as the Lenders Do

Typically, your total monthly housing costs should not exceed 28% of your gross monthly income. Or, housing costs plus any outstanding monthly long term debt (car loans, credit card balances, etc.) should not exceed 36 percent of gross monthly income.

Ask Lender Determines Total Monthly Housing Costs

It usually includes your mortgage principal and interest payments, property taxes and hazard insurance. Determine how much your financial institution is willing to lend you by completing our mortgage calculator or calling a Cressy & Everett Real Estate sales professional for help during the pre-qualification process.

Know How Much You Can Afford

Lenders factor in sales price and down payment, but place more importance on how much you can handle in your monthly expenses.

Become a pre-approved buyer. Pre-approval gives you more buying strength since the lender makes a credit decision and pre-approves you for a certain mortgage amount. You'll know what price range your lender will approve and you'll be in a position to make an offer as soon as you find the right home.

The Value of Your Investment

Despite some contrary media reports and some moderate losses in value in the short-term, home values long-term have and will continue to rise. Real estate is a long-term investment. Over the past 30 years, the median price of existing homes has increased an average of more than 6% every year, according to historical data from NAR’s existing home-sales series. Thanks to the power of leverage, a homeowner’s return-on-investment is even more impressive over time. You can visit HousingMarketFacts.com to learn more.

Every Market is Different

Knowing how to negotiate in each market is how a REALTOR® can turn your dream into a home!