Dreaming of that new home can be fun, but finding out that you can't afford it—not so much. Here are four things to consider before you start your search:
Evaluate Your Budget
As a general rule, your mortgage payment should not exceed 28% of your monthly take-home pay. For example, if your household's monthly take home pay is $6,000, multiply 6,000 x .28 and you have your ideal maximum mortgage payment of $1,680. If you are debt free, then you may be able to afford a higher monthly payment. However, be sure to factor in monthly household utility and maintenance cost as well as your debt to keep your budget in check.
Consider Your Debts
Keep in mind the 43% debt-to-income ratio rule—meaning that your monthly mortgage payment, car loans, credit card bills, and utilities should not exceed 43% of your gross (before tax) annual income.
Calculate Your Down Payment
The cash you have for a down payment will make a difference in your monthly house payment—the more you put down, the lower your monthly payments will be. https://onenevada.mycuhomeadvantage.com/Home/PaymentCalculator
Research Ways to Save
One Nevada is committed to helping you make smart financial decisions—which is why we offer free access to HomeAdvantage®. Not only can you use this program to search for homes and find an agent online, but when you use one of our approved agents, you qualify for HomeAdvantage Cash Rewards.*
Interested in learning more about what you can afford, as well as how to earn Cash Rewards on your dream home? Call 702-382-4094 to find out more!
Equal Housing bug.
* Rewards equal 20% of the agent's commission, an average of $1,500 in savings per transaction!