As a first-time homebuyer, you are are probably curious about how much you can afford before you even talk to a real estate agent or home loan professional.   As a general rule of thumb most people who have good credit and a steady income can afford to buy a home that cost 2 and one half to three percent of their annual income.

Most lenders can include other forms of steady income which may be in addition to your salary.  This would include such sources such as retirement, disability, child support, alimony or commissions and bonuses.   You will most likely be required to show a history of at least two years and the probability that the income will continue. 

Using my rule of thumb as an example, let's assume that you have a combined annual income of $30,000 from your salaries and other steady income.  Your debts, such as car payment and credit cards, are less than 8% of your income and you have a good credit rating.  You would probably qualify for a home between $75,000 and $90,000.  There are numerous homes in St. Augustine in this price range including short sales and foreclosures.
 
Please keep in mind that the actual amount that you will pay for your home depends on the type of loan program, interest rates and your credit score.  Remember high debt will reduce the amount that you can borrow.  The higher your monthly debt payments, the smaller the amount you can borrow for your home.   With this in mind it might be in your best interest to pay these off before considering a home purchase.

Marjorie Taylor, Watson Realty Corp. is a licensed Real Estate Broker and community leader representing Homes in St. Augustine.   She holds the professional designations of CDPE, CRS, CSP, e-PRO, GRI, TRC and is passionate about helping clients buy and sell Homes in St. Augustine and Homes in St. Augustine Beach, Florida.
904-591-9121
www.MarjorieTaylor.NET
Marjorie@MarjorieTaylor.net
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Marjorie Taylor, REALTOR


Marjorie Taylor, is a licensed Real Estate Broker representing Landon Homes and is a Certified Stager with VIP Staging and Home Management.  A community leader, Taylor is past Chairman of the St. Augustine St. Johns County Board of REALTORS Technology Committee; and active in the Women's Council of REALTORS, she is professionally educated and trained, having earned the designations of CDPE, CRS, CSP, e-PRO, GREEN, GRI, TRC.  View the Model Homes in St. Augustine

Marjorie is passionate aboutSt. Augustine and the needs of her clients.  2010 Entrepreneur of the Year - Women’s Council of REALTORS St. Augustine Regional.

904-591-9121
www.Landon-Homes.net 
www.StagedByVIP.com

 
This post has been included in Florida Real Estate News

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Marjorie Taylor, St. Augustine Florida

Marjorie Taylor

Saint Augustine, FL

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Landon Homes

Address: St. Augustine, FL, 32086

Office Phone: (904) 591-9012

Cell Phone: (904) 591-9121

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Author Bio: Marjorie Taylor, is a licensed Real Estate Broker representing Landon Homes. Marjorie is a Certified Stager with VIP Staging and Home Management. A community leader, Taylor is past Chairman of the St. Augustine St. Johns County Board of REALTORS Technology Committee; involved with the St. Augustine Regional Women's Council of REALTORS and she is professionally educated and trained, earning the designations of CDPE, CRS, CSP, e-PRO, GREEN, GRI, TRC.



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