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How Much Home Can You Afford?

By Amy Patterson

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It’s the age-old question with mortgages…and one we get frequently. But really, how can you know how much home you can afford. There are a lot of things to take into consideration, but there is one big thing that can quickly help you get a gauge for how much you can afford – a pre-qualification.

And because you will obtain your pre-qualification through Stockton Mortgage (of course), you’ll know what price range within which to search for your home within 24 hours. Your pre-qualification will give you the highest amount that you can be approved for.

So if your pre- qualification is the highest you can go…how close to that number should you get?

Just because you have qualified for a large loan amount, does not mean that you have to utilize it in its entirety. When considering how much you should pay for your home, take into consideration things like your monthly payment, what you need for your current and perhaps growing family, and what things are desired in your new home. You should sit down and make a list of your current expenses and income and see where a mortgage payment would fall within that.

Still need help?

If you need help finding a good price point, talk to your mortgage banker.

 

Tags: First Time Home Buyers, Home Loans, Home Buyer