Are You Wondering How Much House Can I Afford?

Are You Wondering How Much House Can I Afford?

One of the first questions that normally go through the mind of a first time home buyer is "how much house can I afford?" and there is no clear cut answer for everyone. One lesson that I learned the hard way, is not to let to much emotion come into play during the purchasing decision. Also, although real estate agents are extremely helpful in the home shopping and purchasing process, remember, they are paid on commission, so can sometimes push you towards the higher end of what you can afford for their own benefit. There are many factors you should take into account but some of the most important ones include, but are not limited to:

• Salary
• Current Living Expenses
• Down Payment 
• Current Debt
• Real Estate Taxes

There are great tools out there to help you figure out a comfortable amount that you can afford. One of the easiest ones I have found is from Bankrate.com. They put together this simple New House Calculator to help  you determine this amount. Whether it's your first house or your a seasoned home buyer, this is always a great exercise to go through. If you have any stories or advice that was helpful in your experience, please leave a comment.