How Much Home You Can Afford

Home 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 cost, 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.

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Nancy David, ASR, CNE, AHS
Professional Realtor®
RE/MAX Associates Northeast II
Phone: 281-812-6748
eMail: nancy@NancyDavidRealtor.com
www.NancyDavidRealtor.com
RE/MAX Associates Northeast
18700 W Lake Houston Parkway
Humble, TX 77346
Each office independently owned and operated.

Nancy David with RE/MAX Associates Northeast is your real estate professional specializing in Kingwood, Humble, Atascocita, Eagle Springs, Fall Creek, Summerwood and the entire northeast Houston area. If you are considering buying or selling a home please give me a call to get the highest level of professional service … and that’s The Way Real Estate Should Be.

Be sure to bookmark my web site at http://www.NancyDavidRealtor.com for your ultimate real estate resource on the Kingwood, Atascocita, and Humble areas. On my site you can search the MLS to find the perfect home, get information about new home builders, research the area and get information and view photos of the various communities, get the latest real estate news, and view many helpful items and tools regarding buying or selling a home.