How Much House Can You Really Afford? (You might be surprised!)
When you’re house hunting, it’s easy to get swept up in listings and forget the most important question: how much house can you really afford? While salary is part of the equation, it’s just one of many factors lenders, and smart buyers, consider when determining affordability.
Lenders look at your debt-to-income ratio (DTI), credit score, down payment, and even property taxes and homeowners insurance to calculate your mortgage eligibility. Your monthly obligations, like car loans, student debt, and credit card payments, for example, all impact your buying power.
It’s also important to factor in your lifestyle. Do you typically max out your credit cards? Send kids to private school? Prefer to save aggressively for retirement? All of that plays into what you can comfortably afford each month.
In short, affordability is about more than what a bank will lend you. It’s about what aligns with your budget and priorities. Being realistic up front will save you stress (and money) in the long run, and your Ellason Mortgage Group Loan Originator will be there every step of the way!
