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Buying

How Much Can You Afford

A general rule of thumb is you can afford 2½ times your annual income. Use our Home Affordability Calculator to determine how much you can afford.

The amount you can borrow and what you can afford are based on a number of factors including your down payment and qualifying ratios. While you may be able to get a large loan, make sure the payments fit into your budget so you don’t become “house-poor.” Use our Mortgage Payment Calculator to help determine the right price for you.

As part of the qualifying process, lenders will usually assume you can afford to spend 28% of your total income on your mortgage, property taxes and homeowners insurance. Including these costs, your total debt (with auto loans, credit cards, student loans, etc.) should not exceed 36% of your total income.

View our Considering Homeownership Module, an interactive learning experience in our Financial Wellness Center, to learn all about what you should consider before buying a home.

Finding A Home

Once you’ve determined how much you can afford, the search for the right home begins. The average homebuyer looks at 16 to 25 homes before selecting one to buy. There are several factors to consider including price range, location, type of home, school district, just to name a few. The internet is a great research tool to see what homes are available, what they offer and how much they are selling for. An experienced real estate agent can help you target the right homes and can provide a wealth of information about each one and their neighborhood.

Buying a Home Module

View our Buying a Home Module, an interactive learning experience in our Financial Wellness Center, to learn all about the process, resources, and strategies to help buy a home while sticking to a budget.