Getting a mortgage in Miami, especially your first time around, is an exciting economical decision. As we have learned in the last few years, you could end up into much difficulties if you get a home mortgage you can’t pay back. To prevent this situation from happening and degrading your credit history should you get out of your job or have different economical difficulties once you have your home, pay close attention to how much of a home mortgage you could afford.

Fortunately, it is easy to find out how much home you can afford by utilizing 3 easy steps that determine percentages of your monthly income.

First, your monthly payment should not be over 28% of your before-tax monthly income. For example, if you and a spouse have a combined annual income of $80,000, your mortgage obligation shouldn’t be more than $1,866.

Second, your entire housing payments shouldn’t not be over 32 % of your gross monthly income. To find out about this rule, add other housing costs, like home owner’s insurance, property taxes and private mortgage insurance (PMI) into your mortgage payment. This amount can not be over 32 percent of your pre-tax monthly income. That means for the same married couple making $80k a year, their total monthly housing expenses cannot be over $2,133 / month.

Then, your total debt payment can not be more than 40 percent. Do you have credit card debt, auto loans, or department stores debt? If you do, you need to be careful that your total monthly debt payments plus your total monthly home payments do not exceed 40% of your gross monthly paycheck.

Follow this sample to see how much you can obtain in your next mortgage in Miami. Assuming a 6% fixed interest rate on a 30 year mortgage (rates are usually lower right now if you have very good credit), your home mortgage payments would be about $55 for every $10,000 that you borrow.

First, divide $1,866 (the maximum monthly amount for the married couple’s mortgage payment) by $55 and obtain 33.93. Then, multiply 33.93 by $10,000 and get $339,300, your maximum mortgage number you could qualify for.

are you ready to start looking for a house? Save time, money, and problems by getting your financing first. obtaining a pre-approval offers you the trust that you’ll be able to qualify for a mortgage in the number you are looking for, plus it shows sellers and their agents that you are committed to the process.

Also, your real estate agent will take you much more seriously because you have completed a pre-approval and know what you desire. The biggest fear that real estate brokers have is to waste their time with individuals who are just looking and aren’t serious about purchasing a house.

By following the rules mentioned in this article, you will easily obtain your Miami mortgage. Also, by being pre-approved for a home mortgage, you’ll have a better idea of what type of home to go after and what is the maximum value you can pay for a house.

To read out more, you can visit our Miami mortgage site or visit us at: Miami Mortgage Home, 95 Merrick Way, Suite 514, Coral Gables, FL 33134 (305)710-5183. In the site, you can read many more essays about how a Miami mortgage works.