A home buyer will typically be able to afford a home that is 3 to 3.5 times your annual salary (or income). Another general rule is your total monthly expenses (including the new home) should never be above 45% of your gross (pretax) income. For a first time home buyer, we typically recommend for this ratio to be 40% or less. You should always consult with a professional mortgage advisor (not your typical teller at the bank). You don’t have to get approved with who you bank with. Some banks can be great for your day to day banking, but have a reputation as terrible mortgage lenders. Which is why recommend you reach out to either us or your friends and family for mortgage banker recommendation. A mortgage banker will advise you and let you know your qualification, how much home you can afford, what your monthly payments will be and what you should expect throughout the home buying process.
