There are approximately two million houses for sale today. You just want to buy one.
What’s the most you should pay for it?
Thinking about how much house you can afford is a tricky question for a home buyer. Pay too much for a home, and it’ll break your budget. Pay too little, and you’ll sacrifice features.
The trick, then, is to pay just the right amount so your budget stays in check, and your home is everything that you want it to be.
To find that exact right price, it helps to think backward.
Start with your monthly budget for housing — find that number! — then reverse it out into a search that fits your number and your dreamed lifestyle.
Because remember: “How much house can I afford?” is not a question about the price points you’ll set in your home search. It’s a question about what price house can you buy without blowing out your budget.
You’re really asking; “How far will $x per month get me?”
To find what you can afford, other questions come into play:
- How much are this home’s real estate taxes each year?
- What does it cost to keep this home insured?
- How much will I spend on maintenance and upkeep each year?
You’ll also start thinking about your down payment (and whether you want to make one); and, where interest rates might be when you find the home of your dreams.
You can’t possibly know all of these things at the start of your home buying journey, and you’re not expected to. All you can do is think about your budget and learn what you can about homeownership.
You can also ask questions.
Setting your budget for a house is personal, and an important step in your journey. Spend some time on it and you’ll be a better buyer.
Are you a first time home buyer?
Let us know if you’ve done this before - whether you’re a seasoned pro or buying for the first time. We’ll share the perfect information with you as you need it.
Home buyers snatched up properties for sale in May as housing made its v-shaped recovery.