How Much House Can: You Buy

Include car payments, credit cards, and student loans.

While not strictly required, having 20% down eliminates Private Mortgage Insurance (PMI) and lowers your monthly cost significantly. 🏦 Factors That Determine Your "Buying Power"

The more cash you bring to the table, the lower your loan amount and the better your interest rate. It also signals to the lender that you are a lower-risk borrower. 💸 The Hidden Costs of Homeownership how much house can you buy

A quick "napkin math" estimate suggests you can afford a home priced at roughly 3 to 4 times your annual gross income.

Lenders look at more than just your salary. These variables will dictate your loan approval amount: 1. Debt-to-Income Ratio (DTI) Include car payments, credit cards, and student loans

Your mortgage payment should be under 28% of your gross monthly income, and your total debt payments (including car loans and student debt) should be under 36%.

A good rule of thumb is to set aside 1% of the home's value annually for repairs. 📝 Action Plan: How to Calculate Your Number It also signals to the lender that you

This is the percentage of your gross monthly income that goes toward paying debts.