Active Planning & Investment Solutions logo

2810 Fieldstream Drive North

Wilson, NC 27896

 

Phone: 252-237-4357

Fax: 252-243-2681

 

July/August 2022

How Much House Can You Afford?

With mortgage rates trending higher, you’ll want to find out how much money you can borrow before you start house hunting. Knowing your price range allows you to focus on homes that are within your budget.


Prequalified versus Preapproved
You can learn how much you’ll be able to borrow by getting either prequalified or preapproved for a mortgage. Prequalification gives you an estimate of the loan amount based on the income, employment, bank account and credit information you report to the lender. Preapproval requires you to provide the actual documentation the lender needs to make a decision: W2s, pay stubs, bank statements, investments, loans/debts, and other relevant financial information for you and your spouse, if applying jointly.


The 36% Guideline
Lenders typically want your total monthly debt payments (loans, credit cards, car payments), plus your mortgage, homeowners insurance and property taxes to be no more than 36% of your pretax income. Many financial websites offer mortgage calculators to help you estimate how much payments will be at various interest rates.


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Active Planning & Investment Solutions and LTM Client Marketing are unrelated companies. This newsletter was created by LTM Client Marketing and was not written or created by the named financial professional and does not necessarily represent the views and opinions of Avantax Wealth Management® or its subsidiaries.
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