I have clients call about a new home purchase, and the question is always the same: This is how much I make; this is my current debt; how much can I afford to buy?
Based on the new Qualified Mortgage (QM) rules, I can answer for how much you, as a borrower, can get approved to purchase a house, by plugging in the numbers into a set formula. But a better question is: How much can you TRULY afford?
That answer steps outside of the Qualified Mortgage (QM) rules because only you can establish what other financial obligations and future plans will impact your budget. Should ANY mortgage originator answer that I personally feel they are out of bounds, and infringe on the integrity of our industry. To get those answers you should consult a Certified Financial Planner (CFP), and Certified Public Accountant (CPA).
Listen to my radio show (Real Estate Radio Network, The Todd LaBorwit Show) on WRC, Intelligent Talk 1260 AM, Saturdays 1 – 2 pm, starting April 19.
