How Much Home Can I Afford?

A homebuyer should typically be able to afford a home that is 3 to 3.5 times your annual salary (or income).

Another general rule is your total monthly expenses (including the new home) should never be above 45% of your gross (pre-tax) income. For a first time home buyer, we typically recommend for this ratio to be 35% or less. You should always consult with a professional mortgage advisor. And please remember that not all banks are created equal. Some banks can be great for your day-to-day banking but do not handle mortgage lending successfully. 

A mortgage lender will advise you and let you know your qualifications, how much home you can afford, what your monthly payments will be, and what you should expect throughout the home-buying process. Click here to learn more about basic loans before putting pen to paper!

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