Homebuying Budget Review
There is a qualification calculation, and then there is your actual life. Both matter, and only one of them is on a lender's spreadsheet.
Most people think affordability is a single number a lender gives them. It is not.
The maximum somebody can qualify for and the amount they actually feel comfortable paying every month are not always the same number. We do not live in your house. We do not know what you spend on travel, kids, restaurants, sports or daycare, and a mortgage calculation does not know that either.
So we start somewhere more useful than the maximum: what monthly housing expense feels comfortable to you? Then we work backward.
Start with the number that feels comfortable rather than the maximum somebody qualifies you for. Then look at what has to fit inside it, because the monthly housing number is carrying more than the loan. Enter your own figures. Your numbers are not sent unless you choose to send them to Samantha.
This is arithmetic on numbers you entered. It is not a quote, an offer, a credit decision or a recommendation, and it does not evaluate your eligibility for any loan program. Align Lending LLC, NMLS #2041154. Equal Housing Opportunity.
A monthly housing number that fits your life, and the reasoning behind it.
Taxes and insurance are the ones people forget. Depending on the property there can be association dues as well.
To see that number for a home you are looking at, the Michigan property tax calculator works it out from the address, using the property's own millage.
Usually it is not one giant surprise. It is that there are several different buckets, and people only planned for one of them.
There is the money going toward the purchase itself. There are closing costs. There may be prepaid items like taxes and insurance. There may be inspection costs. People hear the words down payment and sometimes assume that is the entire amount of money involved. It is not always.
They also do not all happen at once. An inspection happens before closing. Other items come up during the loan process depending on the transaction. Then there is the final money handled at closing. The part that matters is that nobody should be learning about one of those categories the day before closing. We should be talking through them well before that.
People repeat that one all the time. There are different loan programs with different down payment structures, and which ones apply depends on your situation rather than on a figure somebody heard somewhere.
That does not mean putting less down is automatically better. It means the decision should come from real information about what is available to you. Before you spend another year working toward a number, it is worth finding out whether that number applies to you at all.
In Michigan, part of that answer can be MSHDA. Its MI 10K puts $10,000 of down payment assistance toward the purchase as a second loan paired with a MI Home Loan, repaid when you sell, refinance or pay off the home or stop living in it, with a 640 minimum credit score and MSHDA's own price and income limits. Our page on down payment assistance explains the other kinds of help and the loans they pair with.
Ask where the number came from before you plan around it.
Deciding you cannot before anybody has looked
Talk through your own situationSomebody calls and tells us why they cannot buy a house before we have even asked a question. My credit is not good enough. I do not have enough money. I need to wait. I need a huge down payment.
And they say it like somebody already made the decision. So the first question is usually, who told you that? Sometimes it is a friend. Sometimes a parent. Sometimes something they read online. Sometimes they do not even remember. They have just believed it long enough that it feels true.
That is what we want people to stop doing. Do not deny yourself before anybody understands the situation. Maybe you are ready. Maybe you are not. Maybe you need time. All of those answers are fine.
But get the answer from your actual situation instead of from somebody else's mortgage.
Loan options
If your credit and income are steady, start here. Mortgage insurance applies with a smaller down payment, and borrower-paid mortgage insurance can come off as you build equity.
How it worksFits a thinner credit history or a recent setback. The tradeoff is FHA mortgage insurance, which can last the life of the loan.
How it worksConventional loans with reduced mortgage insurance for households at or under 80% of the area median income.
How it works
Samantha Shelton has been a licensed loan officer since May 2020 and founded Align Lending in August 2020. Before mortgages she was a stay-at-home mom raising three boys.
In her own words: "I own a mortgage brokerage in Michigan and I help people understand their options before they make one of the biggest financial decisions they are ever going to make."
Recognition includes Hall of AIME, NAMB Broker of the Year, and Woman with Vision, along with her leadership work with AIME.
Align Lending LLC, NMLS #2041154. Samantha Shelton, NMLS 1647301. Licensed in Michigan, Ohio, North Carolina, Florida, Louisiana and Texas.
Read Samantha's storySamantha is very professional, organized, and will make the mortgage process as smooth as possible.
Individual experience. Results vary.
Check it yourself
The official pages behind the rules on this page.
If yours is not here, ask it on the call. There are no dumb questions.
That is one of the most useful questions you can answer before you start. If buying the house means giving up something you are not actually willing to give up, the number is wrong no matter what the calculation says.
No. It tells you what you may be able to borrow. What you should spend is a different question, and it is yours to answer.
That is a completely reasonable place to land. A lender’s maximum is a ceiling, not a target.
Recurring monthly obligations are part of the picture. Knowing what yours add up to is worth fifteen minutes before any conversation.
Online tools guess at taxes and insurance. They are useful for orientation. They are not your actual mortgage.
They can, and they are one of the most commonly underestimated parts of a Michigan payment. The year after a Michigan home sells, its taxable value resets to half of the assessor’s market value, so the seller’s tax bill is not your tax bill. We estimate yours as the new owner rather than quoting somebody else’s bill.
Yes. Things break and utility bills change, so a cushion for repairs belongs inside the monthly number, not outside it.
Align Lending helped me compare mortgage options for my home purchase in Troy and explained everything clearly. The entire process was smooth and straightforward.
Sam is an expert helping choose the right financing options for her clients!
Align Lending helped make purchasing my home in Madison Heights a smooth experience. I appreciated the regular updates and clear explanations along the way.
Samantha is so smart and helpful. She answered all my questions and she followed up with me a week later to ensure I had my questions answered again. She is amazing.
I highly recommend Align Lending to anyone looking for a mortgage broker in Southeast Michigan. The team was knowledgeable, responsive, and easy to work with.
Individual experiences. Results vary.
Not from the maximum, and not from somebody else's mortgage.
Not what product you want. What you are actually trying to accomplish.
Samantha works out what matters most for you specifically.
Your options, the tradeoffs, and your next step. No obligation to go further.
Background from the Align Learn Center, if you want to read before you talk to anybody.
Align Lending LLC, NMLS #2041154. Samantha Shelton, NMLS 1647301. Equal Housing Opportunity. Licensed in Michigan, Ohio, North Carolina, Florida, Louisiana and Texas. This page is for educational purposes only. It is not a credit decision, a preapproval, a commitment to lend, or an offer of credit, and it does not evaluate your eligibility for any loan program.
Got a monthly number that feels right? I'll show you what has to fit inside it.
Samantha Shelton · Broker Owner and Senior Loan Originator · NMLS 1647301
Text Samantha
Texts go to Samantha at (248) 506-5727. 7 days a week, evenings included.