Mortgage Loans For People With Adverse Credit - How Much Should You Borrow

"How much should you borrow?" is a question people with adverse credit wrestle with. The answer is simply as much as you can afford. This is probably less than what you will qualify to borrow from a mortgage lender. To determine what you can afford, factor the mortgage payment and other home costs into your budget.

Cost Of A Mortgage

Your mortgage payment is not just the loan payment; it also includes real estate taxes, homeowner's insurance, and private mortgage insurance premium if you borrow more than 80% of the home's value. These three items often add several hundred dollars to your monthly payment.

Cost Of A Home

Unlike renting, you will be responsible for utility payments for your home. Home utilities are usually higher than an apartment since you have more area to heat and usually a lawn to water. You will also need to plan on making unexpected home repairs. This can include fixing a leaky faucet, replacing appliances, or remodeling.

Plan A Budget

Before you complete the process for a mortgage loan, plan out your monthly budget. List out your current expenses for food, clothing, and other regular bills. Next, decide on an amount to pay for the home, which include both the mortgage payment and home repair expenses. Most experts recommend paying no more than a third of your gross monthly income to home expenses.

One factor to consider is that your mortgage payment will not go up, but more than likely your income will. So through the years, your mortgage will take a smaller percent of your monthly income. However, you don't want to place yourself in too tight of a financial situation by planning on yearly raises.

Get A Pre-approved Mortgage

Another way to find how much you can afford is to apply for a pre-approved mortgage. The mortgage lender will approve you for a maximum amount, but you can borrow less than this. While you are going through the mortgage loan process, ask how much the monthly mortgage payment will be.

Shop Prices

When you do start looking at homes, ask about taxes. This often overlooked area makes a significant impact on your budget. Also, expect taxes to increase as the value of your home rises.

To view our list of recommended bad credit mortgage lenders online, visit this page: Recommended Bad Credit Mortgage Lenders Online.

Carrie Reeder is the owner of ABC Loan Guide, an informational website about various types of loans.

---

7 Credit Improving Steps You Must Take Before Applying For A Mortgage

If you think you have good credit, think again. Chances... Read More

How to Get Cheap Home Loans with a Bad Credit

It's been years since you made any major improvements to... Read More

How to Buy a Home Without a Down Payment

Mortgage rates are rising and it's becoming more difficult for... Read More

Poor Credit Mortgage Reigns High Among Mortgages Available to Bad Credit Borrowers

Like a big brother keeping notes of the erring behaviour... Read More

Mortgage Glossary of Terms

A brief list of some of the most common Mortgage... Read More

Mortgage Loan Most Bankers Wont Give May Be Exactly What You Need to Buy or Refinance Your Home

A few years ago, a loan officer who worked for... Read More

Buying a Home? Dont Get Saddled with Two Mortgage Payments

I have a lot of friends and family who are... Read More

Stated Income Mortgage Loan - Get Approved Online

A stated income or no doc mortgage loan allows individuals... Read More

Home Loans For People With Adverse Credit History

Whether you are planning to purchase a home for the... Read More

Home Equity Loans ? Research Your Lender Carefully

Real estate prices are rising across the country, and Americans... Read More

Reasons To Get A Home Equity Loan

Using a home equity loan really depends on what your... Read More

How to Find the Best Mortgage

The purchase of a new home is one of the... Read More

Remortgage ? When Monthly Mortgage Payments are Touching New Heights

Current economic scene has hinted towards a fall in the... Read More

Build Your Own Dream House!

So you're thinking about building your own house, are you?... Read More

Refinance Your Home Mortgage Online

The largest financial obligation most people ever take on couldn't... Read More

Mortgage Sales Hit Problems

The housing market has been buoyant over the past few... Read More

Home Equity Loans Popular Scams

Most borrowers fail to realize that when trading their much... Read More

Private Mortgage Insurance (PMI)

If your down payment on a home is less than... Read More

Home Equity ? Let the Market Eliminate Your Private Mortgage Insurance

In decades past, most people who were interested in obtaining... Read More

FHA Mortgage: When Your Downpayment is a Gift

There has been so much fraud discovered in the FHA... Read More

Home Equity Loan ? With a Reverse Mortgage, Your Home Pays You!

The home equity loan has become quite popular in the... Read More

Housing Bill - Changes in the Right To Buy Scheme

Presently council tenants are able to purchase their rented property... Read More

Mortgage Advice

In the US today more households have mortgages than ever... Read More

What Your Mortgage Lender Is Not Telling You About Accelerated Mortgages

For years, mainstream banks and financial advisors have been recommending... Read More

Getting a Home Improvement Loan: What Your Bank Needs

The popularity of stores like Home Depot and Lowe's show... Read More

Refinance Benefits - Refinancing Could Save You Money

The most common reason most people refinance is to save... Read More

Obtaining a Home Equity Loan Online

Private lenders, banks, and mortgage companies are all setting up... Read More

Lesser Known Facts About Home Equity Loans

Refinancing your debt via a home equity loan shifts your... Read More

A Guide to Finding Cheap Homeowner Loans

If you're actively looking for cheap homeowner loans, there are... Read More

Guide to Interest Only Mortgages

Here is a useful guide to interest only mortgages. An... Read More

Home Loans For People With Bad Credit - Tips To Getting Approved Online

Buying a home with bad credit doesn't have to stop... Read More

Mortgage: Rehabilitation Of Financial Helplessness

The term 'mortgage' is assumed really controversial by people when... Read More

Buy to Let Mortgages

Finding the right buy to let mortgage is crucial to... Read More