"How much house can you afford?" or "What price range are you looking in?" are among the first questions I discuss with my clients when they began looking at real estate for sale in Summerville, SC. Establishing this vital information at the beginning of the their home search ensures that we will be successful in finding a home for sale in Summerville that they can successfully purchase and secure a mortgage for.
But what happens when you don’t know how much home you can afford? Here are some simple steps to determine what price range you should be looking in...
The price you can afford to pay for a home will depend on six factors:
1. Gross income
2. The amount of cash you have available for the down payment, closing costs and cash reserves required by the lender
3. Your outstanding debts
4. Your credit history
5. The type of mortgage you select
6. Current interest rates
In general, lenders don’t like borrowers to spend more than 28 percent of their gross income per month on a mortgage payment or more than 36 percent on debts.
Still not sure what you can afford? Read More on my website... How Much House Can I Afford? Here you can use a Mortgage Calculator, plug in your information and get in touch with me to finalize what price range you should be looking.
With the real estate market conditions in Summerville tending towards a seller's market, don't waste time looking for homes below or above your price range. Get in touch with me to find out what Summerville subdivisions fit your needs and price range.
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