Buyer Question : How do know what I can afford?

Only look at homes you feel confident you can comfortably afford -- it’s one of my top pieces of advice for homebuyers. ⁣

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Today’s FAF (Frequently Asked Friday) tackles the question you’ll need the answer if you’re looking to buy: How do I know how much home I can afford?⁣

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• Most experts recommend using the 28/36 rule which means you shouldn't spend more than 28% of your gross monthly income on housing and 36% on total debt (including your mortgage, credit cards, and other loans like auto and student loans).⁣

• For example, if your salary is $75,000 per year, your gross monthly income is $6,250 ($75,000 divided by 12). Your total housing costs (principal, interest, taxes, and insurance) shouldn’t exceed $1,750 per month (28% of $6,250).⁣

• Keep in mind the 28/36 rule is just a general guideline. Adjust the percentages to your own comfort level and financial goals. ⁣

Playing around with your budget and ready to see some homes? Send me a message and let’s start your home search TODAY!⁣

David and Leah Howard

Discover Real Estate
479-200-7189