Best home-buying calculator?

[SarahLovesJS]

I am trying to figure out if FI will be able to afford a home next year after the wedding. What is the best "mortgage you can afford" calculator in your opinion? They seem to give crazy different results and it''s driving me nuts!

 

[Haven]

I have to say that your mortgage broker will give you the best idea, because those calculators can be really off. It is never too early to talk to a broker to see what you can afford. This can help you make savings plans and whatnot, too. We spoke with several brokers before we found one we liked. If you get a preapproval before you go house hunting you''ll have a really good idea of what you can qualify for.

I used Bankrate''s calculator when we started looking for a home, but I can tell you that the number it gives me now is lower than what I was actually approved to spend. But, of course, you certainly don''t have to (and probably shouldn''t) spend every penny that you can.

Good luck! House hunting can be really fun! We ended up buying the 69th house we looked at, so just know that you may be in for a loooong ride!

 

[SarahLovesJS]

Thanks Haven, that sounds like a better idea! I''ve noticed the first-time home-buyer loans in VA will allow a killer debt to income ratio, but I think it''s a bad idea like you said. Anyway, thanks again!

 

[Haven]

Sarah, you have no idea! We applied for our preapproval after all of this supposed cracking down on lenders started to happen, and we were still approved for over twice as much as we wanted to spend. It''s insane.

The best advice I ever got was from my mother, who told us to buy only what we can afford on my salary. DH makes way more than I do, so on my salary alone we know we''ll be extremely comfortable in the house. Best thing we ever did. It''s tempting to buy more when you go out and see homes, but don''t do it! I love knowing that we can survive on my measly little salary alone, it gives us more choices in life, in general.

Good luck!

 

[ChargerGrrl]

I dig all the calculators over on money.com

http://money.cnn.com/real_estate/index.html

With that said, i totally second Haven''s suggestion on talking to a broker as well as buying what you can afford on just one salary. It''s a tough thing to do, but can be worth it in the end!

 

[sweetjettagirl04]

Haven had great advice - I work in the industry so just make sure you''re not just looking at the payment and interest estimate they give you - look real hard at the taxes and escrow, because that can make that payment go up anywhere from 200-900 per month depending on where you''re buying (ie- new construction is going to be taxes on the land initally and will rise considerably when they assess the house, too, so be prepared!) That''s the thing that everyone complains about is the payment change because your escrow will vary (if you choose to have escrow in your payments, but I would suggest it because it''s budgeted in there for you for taxes and insurance) when taxes are assessed each year. And, I just read today that even if home values are going down, doesn''t necessarily mean taxes are... boo! Good luck!

 

[Dancing Fire]

forget about those calculators and don''t believe what them mortgage broker tell ya, they''re full of B.S.

only you can figure out what you can or can''t afford.