Description
Use this tool prior to going to see a lender. It duplicates the financial calculation the bank will conduct to see how large a mortgage they are willing to provide based upon what they think you can afford. The banks / lenders typically work at three factors when determining how much you can afford:
When to Use
What information you will need
To effectively use the financial tool kit it is best to have the following on hand:
Note: You do not need to have all this information to use the tool, but the more you have available, the more accurate the calculation.
Step 1: About the new property (or mortgage)
Step 2: About your current Income
Step 3: Identify your Debts (what you owe others)
Step 4: Identify cash and assets available for your New Home AND estimate your closing costs.