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Evaluate your financial situation as the lenders do. Typically, your total monthly housing costs should not exceed 32% percent of your gross monthly income. Or, housing costs plus any outstanding monthly long term debt (car loans, credit card balances, etc.) should not exceed 40% percent of gross monthly income. |
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Ask how your lender determines the total monthly housing cost figure. It usually includes your mortgage principal and interest payments, property taxes and hazard insurance. |
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Determine how much your financial institution is willing to lend you by completing our Mortgage Calculator or calling your GMAC Real Estate Sales Representative for help during the prequalification process. |
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Know how much you can afford in monthly payments. Lenders factor in sales price and down payment, but place more importance on how much you can handle your monthly expenses. |
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Become a pre-approved buyer. Pre-approval gives you more buying strength since the lender makes a credit decision and
pre-approves you for a certain mortgage amount. You'll know what price range your lender will approve - and you'll be in a position to make an offer as soon as you find the right home. |
