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FAQ- 1st time home buyer in Virginia- How much of your income should be allocated for Mortgage payment?

By
Real Estate Agent with Samson Properties VA0225077251

Northern Virginia or across the country millenniums has been saving up to buy their first home. 

Biggest concern first time home buyers in the Fairfax and Loudoun county area have is they don't want to be house poor. Real estate is one of the most expensive investments or a purchase for any individual.

So what should be the percentage of your income allocated for your real estate mortgage payment?

The rule of thumb in the real estate industry is that your mortgage payment, taxes, condo/HOA fees, insurance, and all other monthly debts, should be no more than 45% of your gross monthly income.

However, if you are expecting a bonus or major life-changing event in your life you may want to reconsider that percentage. Discuss with your financial adviser and/or loan officer about your financial health.

 

Image by Stuart Miles at FreeDigitalPhotos.net

 

 

Posted by

 
                             
Associate Broker
MRP, ABR, ePRO

NVAR, Life Time Top Producer
NVAR,Multiple Million Dollar Sales Club Member
Samson Properties
Cell - 703-625-4949
Email - info@eNOVAHomes.com
Web: www.eNOVAHOMES.com
 
Residential real estate agent serving Northern Virginia in Fairfax & Loudoun county over a decade and almost $100+M in sales volume experience. 


 

Comments (2)

Patricia Kennedy
RLAH@Properties - Washington, DC
Home in the Capital

Ritu, most of my buyer clients spend a whole lot less on their PITI than their lender is willing to give them.  I think it's usually smart to underbuy a little bit - unless you are in a profession where your income is almost certain to increase over the next few years.  

Jul 27, 2016 01:54 AM
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Hi

Thanks for a great series of posts - especially these FAQs!

We like your writing style!

We wish you great success with your blog posts and networking with other members of Active Rain!

We clicked the “Follow” button on your profile so that we will be alerted to your future blog posts and can read and comment on them, and we invite you to "follow us" - should you be interested. There is no requirement or obligation for you to do so, but we would be honored if you choose to do so!

Aug 08, 2016 11:30 PM