How Much House Can You Afford?
The first step toward buying a home is to determine how much house you can afford to buy. Knowing your affordable price range will bring your house-hunting into focus. Call your loan officer if you don’t have one, I will be happy to refer you to top notch professionals who would get you pre-approved after reviewing your financial information. This process will allow you the opportunity to negotiate as a cash buyer.
How much house you can afford to buy depends on two things: how much you can afford for the monthly housing payment, and how much you can invest in the down payment? Monthly payments, or as often abbreviated as your “P.I.T.I.”, include principal and interest on the mortgage loan, and property taxes and insurance against fire and other hazards. Sometimes monthly housing costs include homeowner’s association fees, condo fees and mortgage insurance premium.
Even though there are many ways to qualify to buy a home, make sure the monthly payment makes sense for you. How large a payment you qualify for will depend upon a variety of factors? These factors include credit history, size of down payment, and length of employment. Everyone’s circumstances are different.