Here are three steps to help you understand how much house you can afford.
I often have buyers call me and say that they want to buy a house but don’t know how much they can afford. I have a rule of thumb to figure that out, and it has nothing to do with what you qualify for. The first step is to figure out how much you want to spend on housing and what’s realistic because, in general, the bank will qualify you for more than you may be comfortable paying.
Once you know what you want to pay, talk to a lender and make sure you can qualify for that. Find a lender that isn’t going to pressure you to max out your loan just because you can find houses in many price ranges in this market. Once you’re qualified, your lender can accurately tell you how much you can afford. That’s the financially safest way to know how much house you can afford.
If you have any questions, don’t hesitate to reach out to me by phone or email. I look forward to hearing from you.
