How Much Home Can I Afford?
This is a common question that many of our home buyers have and while there is NOT an exact answer because there are many factors and different mortgage products that a mortgage lender will look at to determine what you qualify for. However, generally speaking, a home buyer will typically afford a home that is 3 to 3.5 times their annual income. Another general rule is your total monthly expenses (including the new home) should be at or below 45% of your gross (pretax) income.
You should always consult with a mortgage professional and please remember that not all banks are created equal. Some banks can be great for your day to day banking, but have a reputation as bad mortgage lenders. Therefore, please ask either us or your friends and family for mortgage banker recommendations. A mortgage banker will advise you and let you know your qualification, how much home you can afford, what your monthly payments will be, and what you should expect throughout the home buying process.
You can find some of our favorite mortgage lenders here.
You should always consult with a mortgage professional and please remember that not all banks are created equal. Some banks can be great for your day to day banking, but have a reputation as bad mortgage lenders. Therefore, please ask either us or your friends and family for mortgage banker recommendations. A mortgage banker will advise you and let you know your qualification, how much home you can afford, what your monthly payments will be, and what you should expect throughout the home buying process.
You can find some of our favorite mortgage lenders here.
