Mortgage Houston

Bigger is better in Texas and Houston is no exception.  Known for NASA and limitless aspirations and the oil and gas industry with its wealth, neighborhoods with expansive homes can be found throughout the Houston metro area.

But how much of a loan can you really afford?

When looking for a mortgage in Houston, it is very important to work with a reputable lender who will fully disclose the terms of the loan and who will find the best type of loan for your particular situation.

A general rule of thumb for conventional loans is 28% of your gross income (pretax) for your housing expense (principal, interest, taxes and insurance) and no more than 36% for total debt. There can be some variance in these ratios depending on the amount of money you put down, your credit score, and the type of loan you are getting.

However beyond looking at the ratios, it is always a good idea to look at your total budget and see how much you really can afford to spend.  If you don't already use a budgeting program, Quicken and MS Money both have built-in budgeting features.  If you use Excel, PearBudget  is a straightforward budget worksheet that quickly illustrates where your money is going.  If you like personal guidance, find a financial planner to work through it with you.

Once you've been prequalified for a mortgage by a Houston lender, plug that new loan amount into your budget and live as if you were already paying the new housing expense.  Do you still have enough disposable income that you can live comfortably?  Are you able to budget for unforeseen expenses?

It doesn't do anything for you if you find the home of your dreams, but buy it with a loan that gives you nightmares.

I have worked with many lenders throughout my real estate career. If you are looking for a mortgage in Houston, I would be more than happy to share the benefit of my experience and refer you to a reputable mortgage lender.