logo
A house with a beautiful kitchen

How Much House Can You Afford?

Do you know that more than 86% of the homebuyers used mortgage and home loans to close a deal on their dream primary home up until 2020?

So if you’re one of those people who don’t have the cash to afford a house, don’t worry. The National Association of Realtors states that younger homebuyers often get demotivated to buy a house because they think they can’t afford one. This is when, instead of feeling upset, you should only be asking one simple question:

How much house can I afford?

While you may not know the answer to this question, but then what are we here for?

Understand Mortgage Rates

To know how much house you can afford, the first step is to research and understand mortgage rates. These rates directly impact house affordability at any given time. When calculating house affordability, you’ll come across mortgage estimates. This is what your lender will use to decide whether or not you qualify for a loan.

The four integral pre-requisites of mortgage qualification include:

  • The debt-to-income ratio (DTI)
  • Credit score and bill payment history
  • Proof of income
  • How much down payment you can make using cash reserves
  • Whether or not you have an adequate financial cushion to bear the future expenses associated with owning a house

Other Factors that Affect How Much House You Can Afford

Here are some of the other factors that may impact your house affordability:

Debt and expenses

Your monthly/regular financial obligations, such as your child’s school fee, grocery expenses, student loans, and credit card payments.

Credit Profile

This includes your credit history and score, that’s a clear explanation of how much loan you owe and your capacity to pay it off.

Financial statements

Property Taxes

Property taxes greatly influence your house affordability. This usually varies the type of listing and the property location you’re interested in. Right now, in Texas, the average property tax rate is 1.80%. Thanks to homestead exemptions, you may also be able to make your assessed affordability lower than the market value.

Want to Qualify for First Time Homebuyer Mortgage in TX? We Can Help!

Applying and qualifying for a home loans for first time home buyers can be an overwhelming task for first-time buyers. This is where Z Finance Solutions comes to the rescue.

From home buying services to home loan application assistance and advisory services, our experts can help you streamline the entire procedure. Whether you’re looking for real estate advice on the down payment of a home, closing cost, or preapproval assistance, you know where to go!

We can help you own a home or become the next successful real estate property investor in TX. Avail impeccable property hunt, advice, realtor service, loan process assistance, evaluation, and pre-approval services today!

Contact us now.

Leave a Comment

Your email address will not be published.