How Much House Can I Afford?

source: thehouseplanshop.com

source: thehouseplanshop.com

 

How much house can I afford?

 

This is usually the first question that pops up when thinking about buying a house. To find this number out you can go online and plug your information into a mortgage calculator, or even better, you can go to your bank and request a pre-approval for a loan.

Several factors from your financial history make up the approximate loan you can get. Your income, credit rating, existing debt and approximate down payment will all be important when coming up with this number.

 

After finding out how much you’re able to spend on a home, it’s good to keep in mind that it’s usually best not to go to your maximum amount. The last thing you want is for your mortgage payment to be a stressful financial obligation or feel like a big risk.

 

What can also help with your mortgage payments is of course, saving up for a large down payment. The larger the initial upfront payment you can bring to the table, the smaller the loan you will have to be paying interest on.