Taking Financial Inventory – How Much Can You Afford to Pay for a Home?

Chapter 2 helps you assess your financial readiness to buy a home. You will figure out home much you can afford to pay for a house after considering upfront and ongoing costs based on your financial resources and expected ongoing income. Creditors consider your income and assets an indication of your ability to repay your mortgage loan.

2-1      Your Financial Foundation.

2-2      “Ability to Pay” Self-Assessment.

2-2-1 Your Financial Foundation Cornerstone – Your Balance Sheet.

2-3      Determine What You Can Afford.

2-4     Method 1: The Quick and Easy Home Affordability Calculation Method.

2-4-1 Transferring the Quick and Easy Estimate to the KHBAN Table.

2-4-2 A Quick Look at How Mortgage Payment Amounts Relate to the Mortgage Terms Your Lender Offers

2-4-3 The Impact of Lending Terms on Payments and What You Can Afford.

2-5      Method 2: Breaking Down Income and Expenses to See Your Affordable Payment Options.

2-5-1 Filling in the Schedule for Jack and Eva.