How Much House Can I Afford?

How much house can I afford? That is a question many home-buyers ask themselves when they are in the process of buying a new home.

[{"selector":"#anim-ec667ceb-efb0-4412-a28f-327d9d8d3401","keyframes":{"opacity":[1,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-64a50dbb-2012-495f-8ba1-fa3aeff5a0b2","keyframes":{"transform":["scale(3)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Read more

You must take the time to define a budget and carefully evaluate your financial situation before you start looking for your new home.

[{"selector":"#anim-b4fbee2a-c8b9-43f6-b8cc-42e6a177a039","keyframes":{"opacity":[1,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-5eeb1c7c-ce33-459b-89eb-a8a453b77898","keyframes":{"transform":["scale(3)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-665346d4-3c40-46b0-a5f9-5f2868addfbf","keyframes":{"transform":["translate3d(-133.73983%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-9b55e9de-88a8-4806-9423-6c007eaf0f1a","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-9d03aa20-fb1a-4757-81d8-67c5625d8c2a","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-31308fb7-0f33-44f8-a0bb-c525327faddc","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Read more

This post will explain the most important factors to consider to make the search for your home more accessible.

[{"selector":"#anim-69c3fa6d-929d-4bbf-86bb-4d4bdb8a9114","keyframes":{"opacity":[1,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-8b7930a0-13a1-469e-a9f8-ade9e38a1db4","keyframes":{"transform":["scale(3)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-ec5ee2df-36fa-4cba-812b-04fd3fc3cb5a","keyframes":{"transform":["translate3d(-133.06451%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-a8f09751-049f-4241-b1f4-2ff9fa6926bc","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-00df7e82-ff5f-40d0-bf3a-49a56bb139c3","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-5ecc1ef2-2b19-492c-838b-fca2eb403aa5","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Read more

1. How Much Down Payment Do I Need To Buy a House?

[{"selector":"#anim-fe0a2a84-3c2f-4734-bd0b-eabea6d6a91d","keyframes":{"opacity":[1,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-9527b4db-55fa-4f31-91a0-2a3db7f80112","keyframes":{"transform":["scale(3)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-e456e50a-5abc-4c30-a947-0383b9e1522b","keyframes":{"transform":["translate3d(121.03448%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-74bed6be-ebc2-4d5b-b082-03ee21acdbef","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-d34568e3-5e9c-4c01-a01f-6096bab44f9d","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-f17d4ed7-bdf7-46a6-9748-678c09935d02","keyframes":{"transform":["translate3d(-134.55285%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-1c28f97f-844e-40db-a9e2-b40258c20c33","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-eb8c626e-364b-4d5c-8383-0326a391aefb","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-62e91a70-6701-444e-bbcf-e4b594de1a17","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Read more

There are several types of mortgages, including 30-year fixed-rate loans, 15-year fixed-rate loans, and adjustable-rate mortgages.

[{"selector":"#anim-d1f17302-233a-4736-945c-e3effacc6651","keyframes":{"opacity":[1,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-b0438ac0-4002-4a16-b08e-746c566e31d8","keyframes":{"transform":["scale(3)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-a2aa724f-36dd-46c6-bf1b-a90cfead01b5","keyframes":{"transform":["translate3d(-127.23881%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-7db6f1e1-1d76-4a96-8740-8c3136279b20","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-40ad2ee7-3279-4d19-bc99-0ef771e6800f","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-32ec6f5a-7130-404d-a47a-cc6a319f6c59","keyframes":{"transform":["translate3d(128.06324%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-614a7093-d00b-4354-a848-9efe144ac090","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-0398d305-16c1-4321-aa45-134cd312dda1","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-c42ddaff-272f-41a9-8373-4fee030388ae","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Read more

The next step in calculating how much house you can afford is to figure out your debt-to-income ratio.

[{"selector":"#anim-afa01716-3069-4e08-a7da-f4cc42e6facd","keyframes":{"opacity":[1,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-61ebf20f-423d-4e29-9ba5-b774fecae2ba","keyframes":{"transform":["scale(3)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-51f9725f-c12a-4039-aa9d-17c6d11b1218","keyframes":{"transform":["translate3d(-132.00001%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-d9daf5a6-c36f-4993-b73d-a388eda3f8e6","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-8522f4b3-de11-46eb-9563-e437df197a21","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-3b578859-0387-4f99-adbe-56812141cda8","keyframes":{"transform":["translate3d(130.03952%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-1768ad80-0269-4447-9c6d-592429bb2acb","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-31a9e318-4fe6-45c7-a599-fd6fc275b2ba","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-0d69a0cf-b156-4763-b230-aa9f9102d29d","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Read more

This number is significant because it shows lenders the percentage of your income allocated to debt repayment every month, including your mortgage payment.

[{"selector":"#anim-7a664383-87da-4586-8d89-a56b796841d2","keyframes":{"opacity":[1,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-0da31ad6-e490-4777-944a-1c8646b198bd","keyframes":{"transform":["scale(3)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-1124741a-c3fd-4849-817f-90e70dccc305","keyframes":{"transform":["translate3d(127.48092%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-731df3f3-9a4f-4305-9763-ad75be5890b4","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c0a23de1-d194-43b6-bfa5-f1aca28679f4","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] Read more

4. What Are Closing Costs and How Much Money Do I Need for Them?

[{"selector":"#anim-fae4c22b-859e-47f2-a744-2e4b0b88d564","keyframes":{"opacity":[1,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-865a0695-a242-42e5-8ee5-a16a57490b70","keyframes":{"transform":["scale(3)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-7817b20c-77bf-40bd-bd8f-42a21f847ac8","keyframes":{"transform":["translate3d(-126.10294%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-f7907c18-0524-410e-82b8-801fa5bd8929","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-14d1784d-fa95-44f5-9f76-40d501e3f418","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-b1ae6f37-425e-497f-8f29-3d97cd1c8810","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-091f4a73-ddb1-4441-8b6c-cc10e7793111","keyframes":{"transform":["translate3d(133.99208%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-9bf91924-7974-4826-8079-1347daf283b5","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-63e90a98-ad01-4562-b73e-d9c5159758cc","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] Read more

A rule of thumb is to budget at least 1.5% to 2% of the purchase price for closing costs.

[{"selector":"#anim-06368155-e3e0-4b27-bafd-22cad4562d70","keyframes":{"opacity":[1,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-c68ae5c0-6610-4e9e-98d1-5ac751407621","keyframes":{"transform":["scale(3)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-ee50cf8a-e787-4652-9d0c-ff47e84ee827","keyframes":{"transform":["translate3d(-128.2353%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-253c04a4-4759-474e-adf2-531c16d681b6","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-440ace23-5c7b-427a-9735-b1050513770a","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-097cf2d6-b02f-4440-87f2-897fab11e4d8","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Read more

Swipe Up To Read More

[{"selector":"#anim-7f4720f2-e361-4e2a-86f6-859342ce2d7c","keyframes":{"opacity":[1,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-ec432b14-da17-41c3-a9ab-0dd7f934f850","keyframes":{"transform":["scale(3)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Read more

How Much House Can I Afford?

How much house can I afford? That is a question many home-buyers ask themselves when they are in the process of buying a new home.

You must take the time to define a budget and carefully evaluate your financial situation before you start looking for your new home.

This post will explain the most important factors to consider to make the search for your home more accessible.

1. How Much Down Payment Do I Need To Buy a House?

The required down payment amount will depend on various factors, including the terms your mortgage lender mandates.

There are several types of mortgages, including 30-year fixed-rate loans, 15-year fixed-rate loans, and adjustable-rate mortgages.

2. What are the Various Types of Mortgage Options?

The next step in calculating how much house you can afford is to figure out your debt-to-income ratio.

3. What Numbers and Ratios are Important to Mortgage Lenders?

This number is significant because it shows lenders the percentage of your income allocated to debt repayment every month, including your mortgage payment.

4. What Are Closing Costs and How Much Money Do I Need for Them?

Closing costs are taxes and fees charged by the lender and other parties involved in the home purchase transaction, such as title companies, lawyers, and escrow agents.

A rule of thumb is to budget at least 1.5% to 2% of the purchase price for closing costs.

Swipe Up To Read More

Read More