Are you disinctive to know how much mortgage you can truly provide? Mortgage brokers and account executives will tell you one thing, but what they tell you misses the target by a long shot. This is why so many people have gone into foreclosure recently. Here is the answer to, How much mortgage can I provide?
First, you have to know what factors to consider. If you are a associate and the woman works, then you nevertheless have to throw out her income completely. Base your bills and budget solely off the mans income because if the woman gets pregnant you will not have that income for a few months. Plus this will give you additional money coming in from her that you can save and use to make your financial situation easier.
Second, you have to consider how much you have in savings. You should never take on a new monthly payment until you have at the minimum 3 months worth of that payment sitting in the bank for an emergency. If you were to lose your job, usually 3 months is enough time to find another job of some sort already if it is just something to get you by. This is very important because if you don’t have a save and you lose your job you will not be able to make your payments. This will ruin your credit and cause you to either file bankruptcy or go into foreclosure. Neither of which are very pleasant.
Last, you have to consider how much house you really need. If you have a large family, then you might need a larger house, but if it is just the two of you and maybe you are planning on having your first child sometime in the next few years, then a 2 or 3 bedroom home will be just fine for you. You should not over extend yourself because that is what causes most people to end up with a mortgage payment that they cannot provide.
You need to make sure your mortgage payment is no more than 20% of your monthly net income, and that is just the mans income since the womans income has to be considered additional. This will give you plenty of room to continue to save and manager your other bills. This is the true answer to, How much mortgage can I provide?