Do you know how much house can you afford?

"How much house can I afford" is a pertinent question that homebuyers often ask themselves. Have you asked yourself this question and are you still thinking about the answer? This article can clear the doubts for you.

There is nothing called an "ideal home". The answer to the question how much house can I afford would differ from one borrower to another since every borrower is unique. Home affordability is dependent on a variety of factors like your income, location, savings, individual preferences and most significantly, the home buying plan you have prepared.

When you're thinking about buying a home, you must try to make a down payment of 20% or over. This would ensure that your monthly mortgage payments remain within your means. Your monthly mortgage payment must not be more than 25% of your monthly income.

Debt to income ratio - An important ratio

The recent mortgage market dilemma has forced the lenders to make their lending guidelines stricter. They suffered huge losses in the real estate market. They're not lending money to people for buying something that they simply can't afford. While assessing home affordability of a borrower, the banks or lenders use the debt to income ratio.

According to the National Association of Realtors home affordability index, if you can make a down payment of 20%, 25% of your monthly income should suffice for your real estate taxes, mortgage insurance payments. However, the banks are somewhat more liberal. Most banks lend money at reasonable rates if your monthly housing expenses are approximately 28% of your monthly take home pay. This ratio is known as the housing expense to income ratio or front ratio.

Nevertheless, banks and lenders also take into consideration other debts like car payments, credit card debts, student loans, alimony and child support. When these debts are summed up with your housing expenses, they prefer a debt to income ratio that's not higher than 36% of your monthly income. This is also known as the long term debt to income ratio or back ratio.

You can determine your home affordability by using the two ratios mentioned above. You can also use a home affordability calculator. By entering basic inputs like your income, debts and the amount of down payment you want to make, you can find out the amount of monthly loan payment and the total amount of mortgage you can afford. This tool is easy to use and helps you make important financial decisions.

Tips for Managing Money

We know very well income having two parts. consumption and saving. This is top most important in our life how to manage the expenditure and saving. In this world some people are there they are getting plenty of money, they are income is much more, but some people are there, their income is limited. According to the income they are managing the family. So we should make a monthly budget to manage our day to days life, that should be our fixed budget. If you spend more then you will put in trouble, you can go for loan also. So you should be sincere in your life in budgeting.

So money management is must to be a successful person, there is no doubt at all. If you want to live without any problem in society. You have to go on proper money management programmed otherwise you will put in trouble in managing your family in future. Anyone want to live successful life in society he or she must learn the money management of life.

Process of Personal Loan

It is easy to get personal loan instead of home loan even if you submit less paper and easy documents, visit any banks and consult any bank customer care. If you might have taken loan previously and having good business record then your loan can be sanctioned within 3 days, no problem at all.

Procedure for Personal Loan

All necessary documents to be handed over to the concern loan officer on a particular bank.
A necessary verification or investigation will be carried out by the bank officer whether all your submitted papers are original or not. So you have to give the accurate address of your home or office, so that the bank officer will reach your home or office without any problem. If the loan bank officer feels any problem about your information he can be cancelled you’re your loan application. Once your loan application rejects, you can’t apply for the loan for next 6 months.


Most of the banks check customers past credit record and about your credit profile. If your score is satisfactory, then chances of getting loan is very fast. All original papers will be verified by the bank credit officer if it is found ok then it will be sent to the concern loan officer for necessary approval. Once the Bank officer is satisfied by your all documents and dully signed properly, after that the loan amount will be disbursed through DD or cheque and you will get it.

Real Estate Business

Some people nurture a wrong notion that investment into a real estate requires bulk of funds and only a millionaire has the financial capability to be a real estate entrepreneur. But it is not always true. You can buy a dilapidated house and work hard to repair and bring back to normalcy. Once these laborious and time consuming tasks are complete, you can sell it at a higher price and go on buying others with the net profit. This way, your asset will go on increasing day by day.


Everyone wants money. Without money human beings will not move even a single step. Real estate business is a ideal and profitable business in the business era. If you want to get much more profit then you have to jump in to the real estate business. You have to purchase the land in low price and develop accordingly as per the market needs, ultimately you can able to sell the house or building making apartment also in much more price.

Benifits of Education loan

Changing the mindset of students is also imperative. In time of bleak recession period, with discouraging news pouring on continuously students may feel despondent about saving money. This negative thinking should be wiped out. They should also be taught the fact that many of today’s wealthy persons started with almost nothing. It was their intelligence, proper planning and skillful management of finance that made them climb up the ladder of success.


Life without a quality education one can’t develop in his/her life. Life is full of competition. We have to struggle with a valuable quality education so that we can able to manage our life in the world. It is not possible to take quality education like management, medical, engineering and other professional educational courses. So we need finance or loan to complete the educational expenditure. Banks are ready to provide loan for the said professional courses with a nominal interests which you can pay on installment after getting the job.

Loan for self employment

The population of the world is growing so fast, due to this reason people are getting problem, they are not getting job to earn to manage their day to day expenditure. Most of the people interest for their own business for self employment. We should welcome them for such kind of business. To start a business any one need some initial investment that may be a big amount or small amount.

In banks, so many projects are available from small to big, you have to decide which one you have to choose. You need some special training also, how to start the business, from production to marketing. All this things you should know to be a successful business man like helicopter planning action to be taken on war footing process. I am sure in the end we will have the taste of success.

Some Information about Business

If any one want to operate a business he must be put more emphasis on the subject business and initially he or she should handle the authority of subject business. To be a successful business man in this business era, you should know the market first. You have to survey the market and find out a real solution about the product and necessity, as we know very well ‘necessity is the mother of invention’.

A thoroughly market survey is required before setting up a venture. Marketing is the main part of a business, suppose set up production unit on a particular products but the subject products having no demand in market. So we can’t able to sell the products ultimately there will be a financial problem in running the company and the time will come the company will be closed.

It is true like the earth moves around the sun. It proves that with marketing a business or company can’t grow which create financial problem a lots. So in business quality, cost, products and marketing is alright means business is running smoothly.