How Much House Can I Afford?

How Much House Can I Afford? It's Not Just About Your Income

One of the biggest misconceptions I hear is:

" I make $80,000 a year, so I should be able to buy a $400,000 home."

Unfortunately, that's not how mortgage approvals work.

Your buying power depends on several factors working together:

• • Your monthly income
  • Your current debts (car payments, student loans, credit cards)
  • Your credit score
  • Your down payment
  • Current interest rates
  • Property taxes and homeowner's insurance

For example, two people making the exact same salary can qualify for completely different loan amounts.

One buyer may have no debt and qualify comfortably.

Another may have tw car loans and high credit card balances, reducing how much they're approved for.

That's why online mortgage calculators can be misleading- they usually don't know your full financial picture.

What I Recommend

Before you start looking at homes, get pre-approved first. 

Knowing your real budget helps you:

• • Shop with confidence
  • Avoid falling in love with homes outside your budget
  • Make stronger offers when you find the right home

Buying at the very top of your approval isn't always the best decision either. I often help clients find a payment they're comfortable with - not just the maximum a lender will approve.

If you're curious about what your monthly payment might look like, I can run different price points so you can compare your options before you start house hunting.