Congratulations! You’re taking a vital step towards buying a home in MN! It’s a smart move to meet with a lender and secure a letter of pre-approval beforelooking for your dream home (Home Buyer Tip: your realtor can help you find a lender that you can trust and who offers excellent customer service!). Getting a mortgage should be one of your first steps you are taking when deciding to buy a home in MN. Here are some great home buyer tips for estimating your mortgage:

Take a deep breath, and assess your current debts, expenses and potential down-payment

Thanks to the advancement of real estate technology, it’s easier than ever to calculate your perfect monthly mortgage payment and plan. Numbers you’ll need to enter include:

• Your household Gross Annual Income
• Owed debts, such as student loan payments, mortgage payments that require continued payments, alimony, credit card minimum monthly payments, child support, etc.
• Amount you’ve allotted for your down payment (Home Buyer Tip: the greater the down payment, the lower the interest rate on your loan and no PMI!)

Once you’ve entered this information, the affordability calculator provides an estimate for what you can spend

Be honest with yourself, and calculate your Debt to Income Ratio, or DTI

One of the most important things you should do when getting a mortgage in MN is reviewing your liabilities. It can be sobering to review your debts, however, it’s important to walk into your lender meeting prepared for a comprehensive DTI (Home Buyer Tip: Different lenders are experienced with different types of buyers. Your agent with The Antonov Group can help you find your best lender fit based on their years of experience with the Minnesota home buying process!).

Use an online DTI Calculator.

Now is the time to use an online DTI calculator, which will provide you with a ratio between your your gross annual income and existing debt.

Use an online Mortgage Calculator

After you have your DTI info, using an online mortgage calculator, you can estimate what monthly mortgage payments you can afford. You can use this along with the other info you’ve collected to collect general quotes from lenders, and research your projected interest rates.

Gather information about your local market and make an educated decision about your readiness to buy

It’s easy to observe overall market trends, as well as the value of real estate in your area, when you know where to look. However, for the most informed, up to date information, we suggest using your real estate agent as a valuable resource for this step. The Antonov Group can provide comparative home values, market analyses and generally great advice based on years of observing and working in the local Minnesota Real Estate market. Whether you’re looking at a seller’s market, buyer’s market or a more balanced market atmosphere, we can steer you in the right direction, and make sure that your home-buying experience is a positive one, whether you’re a first-time home buyer or a homeowner looking to buy and sell!