Ever curious how much house you can afford? For those of you who just want a ballpark estimate, I have created the Conventional Financing Qualification Chart. With just your gross annual income, you can get a general idea of the purchase price you can afford. Of course, a chart this general always comes with assumptions. To make it simple, I have assumed you have $0 debt and have enough savings to put a 20% down payment on the property.
What Else Does the Lender Consider?
Remember, gross annual income is not the only qualification lenders use to determine what type of loan you are qualified to receive. Your credit score, total debt, job stability and other factors also play a part in their decision. However, this chart can give you a rough idea of what you can afford given these basic assumptions.
Interest Rates vs. What You Can Afford
Interest rates change daily, which is why I have included a range of interest rates on this chart. As you can see, changes in interest rates can greatly affect how much home you can afford.
Want to Learn How Much You Can Afford?
If you are interested in learning exactly how much home you can afford, contact me for a no obligation in person or telephone appointment. I do not have to run your credit score in order to give you an idea of how much you can afford given your current financial situation.
Thursday, I will put up the FHA Financing Monthly Payment Estimator Chart so stay tuned!
Other Posts You May Enjoy
- If My Financials Aren’t Perfect, I Won’t Get a Loan in This Market
- 2009 Bay Area Conforming Loan Limits
- The CIA of Lending Series
- More Tax Advantages for the First Time Home Buyer
- Buy a House Today and Win $7,500
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Chris Williamson is a Mortgage Advisor with Mortgage California specializing in San Mateo Mortgage.
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{ 3 comments… read them below or add one }
Great blog. Very informative, especially in light of the ever changing mortgage market, consumers need up-to-the-minute updates on what’s going on.
Wonderful posting , You absolutely hit the
nail on the head, I just don’t understand why people quite get it.
I’m not for sure how many people I’ve talked to about this very
thing in the past week, and they just don’t grasp it.
, Excellent post!
Thanks, Brandon! Glad you enjoyed the post.