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 house you could afford by utilizing three easy steps that specify percentages of your monthly earnings.

First, your monthly mortgage payment might not be over 28 percent of your gross monthly paycheck. For instances, if you and a spouse have a mixed annual paycheck of $80,000, your mortgage payment shouldn’t be over $1,866.

Second, your entire housing obligations shouldn’t not be more than 32 % of your before-tax monthly paycheck. To figure this rule, add up other housing costs, like home owner’s insurance, real estate taxes and private mortgage insurance (PMI) onto your mortgage payment. This amount can not be over 32 percent of your gross monthly income. That means for the same married couple making $80,000 a year, their total monthly home payment cannot be over $2,133 per month.

Then, your total debt payment can not be over 40 percent. Do you possess credit card debt, car loans, or department stores payment? If you do, you need to be careful that your total monthly payments plus your total monthly home payments don’t exceed 40 percent of your before-tax monthly income.

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 obligation) by $55 and obtain 33.93. Then, multiply 33.93 by $10,000 and obtain $339,300, your maximum mortgage number you can qualify for.

are you ready to go house-hunting? Save time, money, and problems by getting your financing first. Getting a pre-approval gives you the trust that you will obtain a mortgage in the amount you are looking for, plus it shows sellers and their agents that you are serious.

Also, your real estate agent will consider you much more seriously since you have done your homework and know what you desire. The biggest fear that real estate agents have is to waste their time with individuals who are only wasting their time and aren’t serious about purchasing a home.

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 learn more, you could 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 could read many more essays about how a Miami mortgage works.