FHA Mortgage Calculator - How Much Can I Afford in Arizona?
Buying your first home in Arizona is a thrilling experience. All those years of saving up to see your family settle down are a part of every American’s dream. If you are looking for a good loan product, an FHA loan is a good option if you want a low down payment mortgage and you have credit scores that are lower than 700.
But before committing to purchase a particular home, you should ensure that you can afford to pay the mortgage.
The last thing you’d want is to fall short in making payments and default on your loan. You can avoid the stress of losing your home by knowing how much you can afford with an FHA loan with Castle Rock Mortgage of Arizona.
Know your DTI
An excellent rule to follow is the 28/36 DTI. This means you should not spend more than 28% of your gross income on housing expenses and less than 36% on total debt like credit cards and car payments.
Crunch the numbers with a mortgage calculator
A mortgage calculator is an excellent tool to determine how much you’ll be paying monthly. First, you must know your monthly income, credit score, and debt. You can then input these into your calculator and wait for the results.
An FHA mortgage calculator from Castle Rock Mortgage can help you determine how much you’ll be paying monthly based on the information you give. It can also give you an estimate of added costs, like your one-time upfront mortgage insurance premium.
Get Pre-qualified for a loan.
A pre-qualification is another way to find out how much mortgage you can afford. You’ll know the amount and type of loan you’ll get by supplying basic information about your financial situation.
You can take it a step further by getting pre-approved.
Here you will complete your mortgage application and undergo a credit check. Upon verification, you’ll receive a pre-approval letter, usually valid for 90 days. The official document serves as proof that you can get a loan for a specific amount.
A pre-approval can give you an advantage over other bidders when buying in a competitive market. It shows the seller that you’re a serious home buyer and can secure a mortgage.
Contact Castle Rock Mortgage of Arizona if you need further assistance.
* Specific loan program availability and requirements may vary. Please get in touch with the mortgage advisor for more information.