What Can You Really Afford? Before Falling In Love With A Dream Home
What Can You Really Afford? before falling in love with a dream home Let’s be real: crunching numbers isn’t as exciting as touring dreamy kitchens or imagining your future backyard, but it’s a must-do first step in buying a home. Before you dive into open houses and Pinterest boards, you’ve got to know your financial foundation. Start with a few basics: 👉 What’s your monthly income (before taxes)? 👉 What do you spend each month ( realistically )? 👉 Any credit card debt hanging around? 👉 What’s your savings looking like? 💰 A quick rule of thumb : Most lenders say you shouldn’t spend more than 28% of your gross income on your mortgage — and that includes principal, interest, taxes, and insurance (aka PITI). But there's more to the puzzle than just income. Let’s talk about the other big players: Credit Score = Big Deal 📊 Lenders love a good credit score. The better yours is, the better your loan options (and interest rates) will be. Not sure where you stand? Pul...
