The Bank Can Approve You for a House You Can't Afford

Can you actually afford the house the bank approved you for? Being house poor is one of the biggest first-time home buyer mistakes, and two numbers tell you if you're at risk. Want a payment that won't leave you house poor? Start with our 60-second check → https://cadremortgage.com/2 The bank can approve you for a house you can't actually afford. Two numbers tell you if you really can, and the bank doesn't look at either one: your take-home ratio and your all-in monthly cost. Plus what counts as a debt (and what doesn't), when borrowing near your max is fine, how to test-drive the new payment for three months before you buy, and how to find your sleep-at-night number. Chapters 0:00 Approved vs. actually affordable 0:39 How the bank gets to your number 0:54 What counts as a debt (and what doesn't) 1:48 What that means for you 2:08 Number 1: Your take-home ratio 3:26 Number 2: Your all-in number 4:24 When borrowing near your max is fine 4:54 The free 3-month test 5:14 Your sleep-at-night number 6:33 Room to bid New videos every Monday and Thursday. Sources: Fannie Mae Selling Guide B3-6-02 and B3-6-05; Bankrate (28/36 rule); Ramsey Solutions (25% of take-home pay). Example numbers only. Not a quote, a commitment to lend, or an offer of credit. Rates and programs change daily and depend on your situation. Luke Shankula, NMLS #1446932 · Mpire Financial Group, LLC, NMLS #2108504 · Equal Housing Opportunity #HousePoor #FirstTimeHomeBuyer #HomeBuying