How Much House Can You Afford?
Buying a house will most likely be one of your biggest purchases. Wondering how much house you can afford? Here are some key factors to help you calculate.
Your income, such as your salary, will help you establish a baseline for what you can afford to pay every month.
You will want to have some cash set aside to help you put down and to cover closing costs. This money can come from your savings, investments, or other sources you may have.
Debt and Expenses
It’s important to take into consideration other monthly obligations you may have, such as credit cards, car payments, student loans, groceries, utilities, insurance, etc.
Your credit score and the amount of debt you owe influence a lender’s view of you as a borrower. Your credit profile will help determine how much money you can borrow and what interest rate you’ll be charged.