Although some prefer renting a home to buying a home, for example because they do not want to make the commitment or because they do not yet know exactly what they want, many people still have the dream of eventually buying their own home. But is it always feasible? How much can you borrow for a house and can you buy the house of your dreams? You will receive general information about borrowing for a house and we will give you a number of practical examples.
How much can you borrow for a house?
On this website you can read how you can find out the maximum amount of mortgage you can get. In ' How much mortgage can you get? 'you get a good idea of the maximum amount of mortgage that you can expect with your income. But, if you know the maximum mortgage you can borrow, then that is not the end of it. That is not the same amount as for which you can buy an apartment or house. How is that possible?
In addition to the cost of the house, there are a number of costs involved in the purchase that you have to take with you for the mortgage. For example, there are the costs of the buyer (notary fees, transfer tax) that you can add to the purchase price. Costs for a broker can also play a role, or a delivery inspection for a new-build house.
This means that suppose you have a house in mind with a purchase price of 149,000 US dollars and you can borrow a maximum mortgage amount of 150,000 US dollars, it may well be that you have to let the house pass you. to go. Although it may seem at first sight that the house costs less than what you can get in a mortgage, the maximum amount that you can get in a mortgage is often not sufficient because of the additional costs. To know exactly where you stand, it is best to consult a mortgage adviser.
Examples of maximum purchase price
The maximum amount of mortgage Person A could get was $ 192,336. Within that budget, this person could get a home of up to US $ 178,089.
Person B was told to receive a maximum mortgage of USD 117,047. The associated maximum purchase price of a home is 108,377 US dollars.
If you make a quick calculation, you will learn that the maximum purchase price is approximately 93% of the maximum mortgage amount. If you already know what your maximum mortgage amount is, then you multiply this by 0.93 and you know approximately the maximum amount for which you can search for a home. The exact amounts depend on many factors. If you want to know exactly what your options are, you can submit your situation and wishes to a mortgage adviser. He then makes a concrete estimate that you can use to get started.