“How much can I borrow to buy a home?”

This is probably the question running through your head if you have decided to purchase a home but is a little bit unsure if you could afford it.

Fortunately for most borrowers, there are different means to help determine the amount they can borrow from lenders. Stuff like mortgage calculators or simply consulting with mortgage brokers can help accurately predict the amount one can realistically afford when trying to take out a loan.

The reason most people want to find out the amount they can borrow is that they want to be able to determine if their monthly salaries can afford to add another payable. This is a prudent thing to do. If you are interested in investing in a property, it is wise to identify first if you will be able to afford it. Your monthly paycheck may be big, but you have to consider the fact that you are paying for other things like food, utilities, credit cards, etc. and adding another item can make things a bit tough for you.

You need to make sure that there’s still some money left in your bank.

Here are 3 things you can do to determine the amount you can borrow:

1. Use a mortgage calculator. There are various mortgage sites that have calculators visitors can use to determine how much they can borrow. This is probably the easiest and most convenient method you can utilize.
2. Do the computation yourself. There is a simple way that will help you pretty much predict how much you can afford if you do take out a loan. You just take into consideration the money you earn each month and then subtract from it your expenditures. It may not be a very accurate figure, but you will be able to have an idea how much money you have left each month for an additional expenditure like mortgage.
3. Consult a mortgage broker. This is a no brainer. Brokers are experts. They will be able to help you answer your question. If you want to know if it’s a good time to buy a property, what type of loan you should get, and how much you can borrow, they are the people you need to run to for help.

If you’re still asking “how much can I borrow?” then it’s best to check out a reliable mortgage broker or lender. They will give you the answers you need.