Buying A Home: Determine What You Can Afford

Buying a home should add to your financial security, not financial stress. That's why, before buying a home, you need to calculate how much you can afford to spend. It's important to be financially equipped to pay your monthly home loan bill, as well as the initial down payment on the home and the closing costs, which can amount to 3% to 5% of the value of the home.

The amount of your down payment will depend on the price of your home, the loan program you qualify for, available cash and your credit history. It can range from 5% of the purchase price of the home, to 30%. At Countrywide’s Full Spectrum Lending, many of our loan programs offer low down payment options.

Not sure how much of your earnings should be set aside for your home loan payments? As a general rule of thumb, your annual mortgage payment, taxes and homeowner's insurance should not amount to more than 28% of your gross income. Also remember to put a little extra cash aside for any expenses that may arise when you take possession of your home such as repairs, maintenance and furnishing your home.

Buying A Home: Even If You Might Have Bad Credit

Worried that you'll have trouble buying a house because you think you have bad credit? What some lenders call "bad credit" may simply be a reflection of their own inflexibility or inability to offer an appropriate prime loan option. We understand that people have different credit histories. It's certainly possible to get a home loan with less than perfect credit! After all, nobody's perfect. Call Countrywide toll-free at 1-800-909-8217 to find out whether you potentially qualify for a home loan with us.

Helpful Home Loan Tools

Use our Monthly P&I Payment Calculator to estimate how much you can borrow, based on the monthly installments of mortgage principal and interest (P&I) you can afford.

Our Closing Costs Overview will help you to determine how much you can expect to spend on your down payment and closing costs. Often, borrowers cover these expenses by using personal savings and gift funds.

Use our Decision Making Tools to help you make sound choices about buying a home. Also visit our Learning Center and use our mortgage calculators and information to guide you through the process of buying a home. Buying a house with less than perfect, even bad credit, might be possible. Countrywide has helped many sub-prime borrowers qualify for a prime mortgage loan.