How Much House Can I Afford?
As the Summer approaches, the already competitive purchase market has buyers asking if they can still afford to purchase the home of their dreams.
The answer is YES.
It is first necessary to find out how much you as a buyer feels you can afford for a monthly payment. Most often, the payment on the home you want is higher than what you can afford. Your experienced loan officer at San Diego Funding can work with you on the gap between the two.
Decreasing the Gap | How We Help.
- Are you presently paying into a 401K or retirement plan? If so, a home is the most significant part of a smart retirement plan. This is easy to document and most financial planners agree. By taking that same monthly amount and putting it toward a house payment, which goes toward retirement as the home loan gets paid down, you can more easily afford a higher monthly mortgage payment.
- Consult with your accountant on the tax savings you will receive with homeownership. These savings can bridge the gap in the payment.
- Your loan officer will run your credit report and advise you on any monthly obligations that can be paid off to increase the amount you can pay for a monthly mortgage payment.
- Your monthly mortgage payment will stay the same as your income increases, so if you economize for a year or two, you will soon feel very comfortable with the payment.
- There are options. If you are not able to afford your ultimate dream home in the present, don't be discouraged. Earning equity in the market is key, so getting into a more affordable home now will help you continue down the path to your dream home in the future.