Buying

Calculate How Much House You Can Afford

Calculate How Much House You Can Afford
In their excitement, first-time home-buyers spend a lot of time and effort in seeing homes that they either cannot buy or do not match their requirements. It is a waste of time and effort that can be avoided if you know what you want in your dream home.

From price range and neighborhood to living area and the number of bedrooms and bathrooms, every feature of the home should be clear in your mind before starting your house hunt. Not only does it save you and your agent’s time and effort but also keeps your home buying exercise smooth and hassle-free.

It is almost criminal to tell your agent that you should have a look at apartments after seeing many single-family homes. Similarly, visiting a few homes in the price range of $500000 and then realizing you have a down payment to qualify for a home valued at $300000 is a mistake that leads you nowhere when buying a home in Las Vegas.

Use Zillow’s home loan calculator to estimate your mortgage payment including principal and interest, plus estimates for PMI, property taxes, home insurance and HOA fees.

When determining what home price you can afford, a guideline that’s useful to follow is the 36% rule. Your total monthly debt payments (student loans, credit card, car note and more), as well as your projected mortgage, homeowners insurance and property taxes, should never add up to more than 36% of your gross income (i.e. your pre-tax income). - SmartAsset

Know your priorities and make plans accordingly to succeed in your home buying endeavor. You will find that the same buying exercise that can test the patience of any ordinary buyer has become a pleasant one with very high chances of success.

Calculate How Much House You Can Afford

Shad Zaman

Real Estate Agent | REALTOR®

Interested in buying or selling a house? To learn more about my services click here.

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July 1, 2022
by 
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