07/10/2024
To calculate how much house you can afford, lenders take into account a few primary items, such as your household income, monthly debts (for example, car loan and student loan payments) and the amount of savings available for a down payment. As a home buyer, you’ll want to have a certain level of comfort in understanding your monthly mortgage payments. Depending on your credit score, you may be qualified for a payment that is greater, but housing expenses exceeding 1/3 of your monthly income should be avoided as a rule of thumb.