Focusing on the Monthly Payment Range

Hi, it’s Tom Heath with the Mortgage Guidance Group at Nova Home Loans in this is our weekly installment of mortgage and real estate related matters. Today’s topic has to do with that purchase price as you’re putting together that search engine for your clients.

We often get that call, “What can I afford to buy?” Now, we don’t look at it as a purchase price, we look at it as a range because our goal is to focus in on that monthly cost, the payment. Some people are restricted by their goals. Some people are restricted by either qualifications, and we have to keep their payment in a certain area. Keep in mind the payment not only includes the principal and interest, but also the taxes, the insurance, and then if applicable, we have to consider HOA fees and solar costs for a lease or solar loan. When we look at all of that, it’s hard to say precisely what purchase price will be the result of that calculation. You have to use a lot of estimates up front. I may qualify someone for a certain loan amount, assuming there’s no HOA, and if they find a home that has a hundred dollar monthly HOA or solar lease payment, that could reduce their buying power, or they could find a home that has lower taxes than we estimated and that could increase their buying power. So we’re going to try to create a range. Certainly, when you get that figure from us, don’t assume that’s the limit, and don’t assume that’s a guarantee, that’s just a general idea. As you start to solidify the property search, send those addresses over to us, allow us to run the numbers with actual figures, and we can get you a much better idea.

Again, if you have questions on this, don’t hesitate to reach out. Give us an e-mail, or you can contact us through our website, And if there’s ever topic, you would like us to cover, let us know. Have a great day.

Tom Heath
Senior Loan Officer
Mortgage Guidance Group of NOVA® Home Loans
6893 N Oracle Rd #121
Tucson AZ 85704