For many people, this is the biggest investment they will ever make.
Stay Within Your Means
How much house can you afford?
Always consult with a professional mortgage representative for advice on your qualifications, how much home you can afford, what your monthly payments will be, and what you should expect throughout the home buying process. Please ask us or your friends and family for mortgage representative recommendations!
A buyer should typically be able to afford a home that is 3 to 3.5 times your annual income.
Your total monthly expenses (including the new home) should never be above 45% of your gross (pretax) income.
Please note that sites such as realtor.com, zillow, and creditkarma are just guides. Your real estate professional can guide you on correct home values and your lender will be able to correctly guide you on financials.
Benefits of Saving Cash
There are several advantages to having cash saved for a down payment and closing costs...
Higher probability of getting approved for a mortgage loan
Shows seller you are serious about buying
Lower mortgage balance and payments
Lower mortgage rates
Less interest expense
Reduced mortgage insurance premiums
Where does your money go at closing? Below is a list of closing costs with typical amounts included.