How much can I afford for a monthly mortgage payment? Even the most financially astute or seasoned homebuyer will question the affordability of a monthly mortgage payment. Often when I pre-approve a buyer, they are surprised at the amount and question if they have the financial worthiness to afford the monthly payment.
Mortgaging a property is a serious long term commitment. Its not like renting a hotel room where you can cancel by giving 24 hour notice or losing a deposit. Emotions run wild and buyers speculate how the many things can go wrong when they commit to a long term mortgage.
My advice is……the 5 year rule. Think back to where you were financially 5 years ago and how you grew during the past 5 years. Perhaps 5 years ago you could not imagine the position you are in today. Similarly you will have 5 years of growth in the next 5 years. So the monthly payment might seem large now, in the future, it wont be.
At Montgomery Mortgage we use the qualifications standards prescribed by Fannie Mae and Freddie Mac. These formulas are time tested. Although you may feel that you can not afford the amount you have been qualified for, based upon historical data, you have the income required to make monthly mortgage payments.
Rest assured, the sky wont fall and all will be ok. It is perfectly normal to be careful and to consider things that can wrong. Be sure to consider where you will be 5 years from now.