How Much House Can I Afford? (Spoiler: Not a Mansion, But Hey, It’s Still Pretty Great!)
Wondering how much house you can afford? Dreaming of an infinity pool and a 7-bedroom estate? Well, you might have to scale that down just a bit. But don’t worry—homeownership is still within reach, and it’s going to be amazing (even if it doesn’t come with a private movie theater).
First, let’s talk about income. Sure, you’re making money, but lenders care about how much of that income is already spoken for. They’ll look at your debt-to-income ratio (DTI)—basically, how much debt you have versus how much you make. If you’ve got a bit of debt weighing you down, you’re not alone. Lenders want to make sure you can afford the mortgage and still eat something other than instant noodles.
Next up: the down payment. Everyone talks about the magic 20%, but here’s the secret—you don’t always need it. With certain loan programs, you can put down as little as 3%. Sure, you might have to deal with PMI (Private Mortgage Insurance), but that’s a small price to pay to stop renting and start owning.
Now, don’t forget about closing costs, property taxes, and homeowners insurance—those extra costs that sneak up on you like a surprise party you didn’t really want. Owning a home means you’ll have responsibilities beyond the mortgage, but that also comes with perks. Like painting the walls neon green just because you can.
So, let’s face it: you might not be getting the 10-bedroom mansion, but that doesn’t mean you can’t find a home that’s just right for you. Whether it’s a starter home, a cozy condo, or a place with a backyard for your dog, there’s a perfect home out there that fits your budget.
So How Much House?
When you’re ready to figure out how much house you can afford, the process doesn’t have to be scary. Pre-approval is your first step to making your dream a reality. And for expert help navigating the numbers, Maor Max Lavi at Superior Mortgage Lending can guide you through the mortgage maze and get you into a home that fits your life—and your budget. Owning a home might not come with a butler, but it’s still the dream.
