An old rule of thumb said that you could afford to buy a house that cost between one and a half and two and a half times your annual salary. Realistically, there’s a lot more to take into consideration. You will need to find out how much you can get from a mortgage and also how much you can truly afford to spend on a home. In order to know how much you can truly afford, you need to take a serious look at your lifestyle, your standard of living, as well as your income and how you choose to spend it.
How Much Home Can I Afford?
What's Your Budget?
You can start with some simple math: Take your monthly income and subtract all of your non-housing-related expenses. What you’re left with is the amount per month that you have available to allocate toward housing. We recommend going a step further to also consider items like maintenance cost, utilities, and possible homeowner fees. You can use our calculator below to get a pretty good estimate of how much house you can afford and figure out how your budget aligns from there.
Now that you have an idea of your price range, now comes the fun part… searching for a house or property. Our Keller Williams team of real estate agents work directly with home loan experts to take a look at your numbers and help you crunch them. Our real estate expert analysis will certainly help to get you on the right track for looking at the right homes.
Our Keller Williams team offers the financial knowledge and experience you need to make a great selection. What do you think? Are you ready to start looking for that perfect, affordable dream home? It’s out there! Let’s get hunting!