Zillow Advice: Buying Process - how do u determine how much home u can afford? http://www.zillow.com/advice-thread/how-do-u-determine-how-much-home-u-can-afford/401556/ Zillow Advice | Zillow Real Estate You need to do a budget with ... http://www.zillow.com/advice-thread/how-do-u-determine-how-much-home-u-can-afford/401556/ You need to do a budget with a mortgage officer. Sometimes when I am working out a budget, I add childcare cost (if they have children) or private school tuition&nbsp;into the equation. All mortgage calculators and most lenders do not ask those questions. It is important to work out a budget to cover all your expenses so you know what you are comfortable paying per month. From the figure I can work out a mortgage amount. Thu, 02 Jun 2011 20:26:00 GMT http://www.zillow.com/advice-thread/how-do-u-determine-how-much-home-u-can-afford/401556/ 2011-06-02T20:26:00Z How much do you spend for ... http://www.zillow.com/advice-thread/how-do-u-determine-how-much-home-u-can-afford/401556/ How much do you spend for your housing now? remembering that home ownership is more then the monthly payment. The unexpected costs are what hurt the most, so how much will you put away for a rainy day! So here is what I would tell you. You need a certain amount each month for repairs. Add what you pay now to the unexpected amount and see where you are. Thu, 07 Jul 2011 16:28:00 GMT http://www.zillow.com/advice-thread/how-do-u-determine-how-much-home-u-can-afford/401556/ 2011-07-07T16:28:00Z As most said, a lender pre-approval.&nbsp; ... http://www.zillow.com/advice-thread/how-do-u-determine-how-much-home-u-can-afford/401556/ <p>As most said, a lender pre-approval.&nbsp; Remember, this is a maximum, don't feel like you HAVE to spend it all.&nbsp; Start lower to see if you can find what you want.&nbsp; It's more difficult to start high and move down in price/</p> Mon, 04 Jul 2011 01:45:00 GMT http://www.zillow.com/advice-thread/how-do-u-determine-how-much-home-u-can-afford/401556/ 2011-07-04T01:45:00Z Contact a local lender and ... http://www.zillow.com/advice-thread/how-do-u-determine-how-much-home-u-can-afford/401556/ Contact a local lender and get prequalified. It is never fun to start shopping for homes and fall in love only to find out that you cannot get qualified for the loan. Sat, 02 Jul 2011 20:35:00 GMT http://www.zillow.com/advice-thread/how-do-u-determine-how-much-home-u-can-afford/401556/ 2011-07-02T20:35:00Z House payment (including ... http://www.zillow.com/advice-thread/how-do-u-determine-how-much-home-u-can-afford/401556/ <p>House payment (including principal, interest, taxes, insurance, HOA) divided by monthly income (before taxes) = percentage A<br/><br/>The maximum amount of home you qualify for can't be more than 31%.<br/>The general rule of thumb for PI is $100 per $10K of loan.&nbsp; Although with interest rates being so low now a days, it could be less.<br/><br/>You also need to consider the second ratio:<br/>House payment + all other minimum monthly payments of revolving and installment loans divided by monthly income (before taxes) = percentage B<br/>If this ratio is above 41% in most payments, then you disqualify.&nbsp; You may have to put more down to offset it or get a lower house price.<br/><br/>I hope this helps!<br/><br/><br/></p> Thu, 30 Jun 2011 07:14:00 GMT http://www.zillow.com/advice-thread/how-do-u-determine-how-much-home-u-can-afford/401556/ 2011-06-30T07:14:00Z Call a licensed lender in ... http://www.zillow.com/advice-thread/how-do-u-determine-how-much-home-u-can-afford/401556/ Call a licensed lender in your area...best of luck Fri, 10 Jun 2011 21:45:00 GMT http://www.zillow.com/advice-thread/how-do-u-determine-how-much-home-u-can-afford/401556/ 2011-06-10T21:45:00Z &nbsp;Yes we sat down and ... http://www.zillow.com/advice-thread/how-do-u-determine-how-much-home-u-can-afford/401556/ &nbsp;Yes we sat down and did a budget, and it is right we could afford that amount of home.. But we will NOT go that high,, just cause we dont want to! i mean, ya we&nbsp; could go their and be s tretched to the limit, but why? and NO way.. not us. We can find a good quality house here in our small town for about 80,000. Yes. not brand new and NOT a fixer upper.. Mon, 06 Jun 2011 13:25:00 GMT http://www.zillow.com/advice-thread/how-do-u-determine-how-much-home-u-can-afford/401556/ 2011-06-06T13:25:00Z You used the calculators ... http://www.zillow.com/advice-thread/how-do-u-determine-how-much-home-u-can-afford/401556/ You used the calculators and got a number that seems high to you, and it is since it is a maximum you can afford.&nbsp; Now plug that number into your budget and figure out a what you are actually comfortable with.&nbsp; That will be the number you take to the lender to see if is under their maximum.&nbsp; Thu, 02 Jun 2011 23:46:00 GMT http://www.zillow.com/advice-thread/how-do-u-determine-how-much-home-u-can-afford/401556/ 2011-06-02T23:46:00Z How is $120k for an affordable ... http://www.zillow.com/advice-thread/how-do-u-determine-how-much-home-u-can-afford/401556/ How is $120k for an affordable mortgage possible? It all depends on your other debt and income level. The old rule of thumb is 3 times your yearly income is a safe gettable mortgage. That sounds close for a conservative number.<br/><br/>If that number was shockingly low just try it again with 7% interest.<br/><br/>$120,000 at 5% is $644.19 a month payment<br/>$97,000 at 7% is $645.34 a month payment. <br/>Both numbers are just borrowing money no PMI taxes, or anything else is included.<br/><br/>We all know that interest rates are going to have to go up. They can not stay at this level forever. You just saw a small example of how slightly higher interest rates will destroy house prices in the future. If your income does not go up while interest rates do how can house prices not be forced down by about 1/4 with a small 2% interest rate increase?<br/><br/>I would rather pay a lower price for a house with more for interest. That way if I had to sell I would not lose so much money. Plus, if I pay off extra each month I can cut down faster the time before the mortgage is paid off than would happen with a lower interest rate. Thu, 02 Jun 2011 22:49:00 GMT http://www.zillow.com/advice-thread/how-do-u-determine-how-much-home-u-can-afford/401556/ 2011-06-02T22:49:00Z Only you live your life. ... http://www.zillow.com/advice-thread/how-do-u-determine-how-much-home-u-can-afford/401556/ Only you live your life. Only you know how much you spend each month. Only you can safely determine how much you can afford to spend on a house.<br/><br/>To do this you need to look at your budget. Look at all of your monthly expenses today. Remove rent from that. If you pay your own utilities remove that amount also. Subtract all of those expenses from your income. Whatever is left is all you can spend on a house, taxes, insurance, clothes, and save some money with. A house eats money. Sooner or later things break or wear out. You want to save money for future expenses and retirement. <br/><br/>Looking at the links below should be helpful. A lender could allow you to borrow more or less than you can really safely afford. Never take so much loan you are struggling to be able to eat good food more than once a week. Also, remember that energy costs and food could cost a lot more in the future. Allow extra for this probably expense.<br/><a href="http://www.trulia.com/blog/dan_chase/2011/04/how_to_determine_what_you_can_safely_afford_to_pay_towards_your_monthly_mortgage_payment_lenders_may_give_a_different_n" rel="nofollow">"How to determine what you can safely afford to pay towards your monthly mortgage payment. Lenders may give a different number. "</a><br/><br/><a href="http://www.trulia.com/blog/dan_chase/2010/01/does_it_make_more_sense_to_buy_or_to_rent_look_at_the_numbers_and_decide_for_yourself" rel="nofollow">"Does it make more sense to buy, or to rent? Here is the way to find out for sure."</a><br/><br/><a href="http://www.trulia.com/blog/dan_chase/2010/02/why_rent_if_you_could_buy_for_less_money_valid_reasons_inside" rel="nofollow">"Why rent if you could buy for less money? Valid reasons inside."</a><br/><br/>Once you have decided to buy and know how much you can safely afford each month a lender can tell you how much that amount per month can get for a mortgage. Thu, 02 Jun 2011 22:32:00 GMT http://www.zillow.com/advice-thread/how-do-u-determine-how-much-home-u-can-afford/401556/ 2011-06-02T22:32:00Z