To find out exactly “how much” home you can afford, it pays to get pre-qualified for a home mortgage to determine the perfect price range for you.
Next, take a few minutes to look at your personal finances. You should have, ideally, 20% of the purchase price of the home as your down payment. Additionally, your debt to income ratio should be less than 36%. Don’t forget to include all your monthly obligations such as student loans, child support payments, credit cards, etc.
Apart from your down payment, ensure that you'll have enough left over to pay closing costs (which includes attorney fees and transfer fees). This amount on average ranges between 2% & 7% of the home price.
Give us a call and one of our agents will be glad to help you with these and any other questions you may have regarding this major step toward home ownership.