Some home buyers start talking to mortgage lenders before they even have a budget established. Now let's talk about when you should take this important step. We just discussed the reasons why it's important to calculate your monthly payments on a mortgage loan. If your payments exceed the amount of money you earn each month, you will eventually default on the loan - and possibly end up in foreclosure. The size of the loan is obviously important, but the monthly payments are even more important in the short term. This is what happens when you don't calculate your monthly mortgage payments in advance. In other words, they failed to establish a budget for themselves and marched blindly into the home-buying process. They didn't take the proper steps needed to determine their affordability level. Many first-time buyers simply took on loans that were too big for them. There were many reasons for this financial fiasco, but the primary reason has to do with monthly mortgage payments in relation to the homeowner's income. In 20, we saw more home foreclosures than ever before in our nation's history. But first, let's talk about why it's important to go through this process. We will get to the "how" of this article in just a moment. You do have a home-buying budget, don't you? For the sake of this article, I'll assume you already have a budget in place, and that you're now ready to calculate your monthly payments for a home loan. When buying a home, it's important to calculate the monthly mortgage payments and then compare them to your monthly budget. By Brandon Cornett | © 2021, all rights reserved | Copyright policy
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