How Much Can I Afford

Dated: 08/24/2014

Views: 151

First-time buyers are often unsure about the financial aspects of buying a home, and you may have many questions swirling in your head. How much can I afford? Do I need a large down payment.

  Your home price range will be determined by your income, credit history, the cash you have for a down payment and closing costs, and your debt. How much you earn compared to how much you owe will likely determine how much the bank allows you to borrow.
  The financial rule of thumb is: your total monthly debt service, which will include your monthly mortgage, shouldn’t be more than about 36 percent of your gross monthly income. Most experts say that your monthly housing expense, including taxes and insurance, should not exceed about 28 percent of your gross monthly income.
  Naturally, every situation is different, and each lender has different rules about working with buyers. A number of choices within your control can affect your monthly payment as well. For example, you might choose an adjustable rate loan, which has a lower initial payment than a fixed rate program. Similarly, a larger down payment may lower your monthly payment.
  If you’d like more information about how much home you can afford, please call or email. I can help you get the mortgage information you need.   If you have more questions about buy a home for the first time, please feel free to call or email me directly at:
Chris Bianco
 (602) 291-2090
 cbianco@civiccenterrealty.com
Blog author image

Chris Bianco

I am the Broker Owner of Weichert Civic Center in Scottsdale, AZ. As a lifelong AZ resident, I live and work here, am raising my family here and understand all things Arizona. My firm lists and sells....

Latest Blog Posts

Getting Ready For Spring Training

We have a client that did a beautiful remodel in McCormick Ranch. He asked if we could help him get it rented out for Spring Training. Having some connections in the baseball industry, I quickly

Read More

Jen And Her Dad Jack

Glad we could help!!When Jen came to us to sell her dad’s house we were glad to help.  We met at the home and gave her some advice and hints to help her maximize her sale price and to the

Read More

Congrats Joan

Congrats to Joan & Scott!It took some convincing but Scott let us List his mother’s home when she had moved on to an assisted living community. Scott had tried for some time to sell it as a

Read More

Coming Soon

We are so excited to have the opportunity to work with Dave & Michele. Several years ago they bought a really great condo in the Desert Ridge area for their daughter. Their Daughter has since moved

Read More