How Much House Can You Buy
How Much House Can You Afford? If you are interested in buying a home, it is a good idea to get preapproved for your mortgage. It will save a lot of time and aggravation. But how much house can you afford? To arrive at an “affordable” home price, you should follow the guidelines of most lenders. This means, your total debt payments should be no more than 36% of your gross income. Why do lenders use this guideline? It’s been shown to be a level of debt that most borrowers can comfortably repay. For your income, you can consider all wages, monies from investments, dividends, alimony and any other money you earn. Then, you need to examine all of your debts. Debts include: credit cards, student loans, car payment, alimony paid out and any other debts you have. Also, you must include any savings you may want to save for…