How much income do I need to buy a house?

Managing Real Estate Broker with Property Up Inc. #471.017853

So you might be thinking about purchasing a home, particularly with prices in several years lower than they've been in several years. Initially, that's a very valid reason to think about buying your first or next home, possibly even an investment home. Besides the cheap prices, there is a variety of other stuff you should be considering prior to making the final decision to start your search process. Firstly what's your personal situation. Are you planning on staying in the area for many years to come? You do not want to purchase a home now and after that think about moving in a year or two down the line, it usually takes a couple of years to build up enough capital to even break even after selling and paying for closing costs.

Next, is your job stable? This question isn't an easy one because often times you're unaware of something down the line that can cause you to lose your work. Have some money saved in the bank to make mortgage payments in case you lose your job. Preferably a year's worth is fantastic, but at least 6 months will be a good start. Is your company likely to relocate you? This isn't always something you've control over or would know in advance, but usually, companies do pay for closing costs and transfer costs if they relocate you.

Ready To Buy Home

What's your personal situation and future situation as to the size of the family? You might need to think about the possibility of your family growing or maybe getting smaller if your kids are getting ready to head off to college. You would like to be sure if this is the right time to purchase that you purchase the right size home, not too big and not too small causing you to need a bigger or smaller home in just a couple of years. If any of those things check out then the next thing you should do so is to consult with a lender to find out if you qualify to purchase a home and how much home you can really afford. Hopefully, you've kept a good credit rating and haven't racked up a lot of debt, these are a few things which could cause you to not qualify for a home or the size home you need to purchase at this point. If all this checks out then the next thing you should do is to find a well-qualified realtor in your area to assist you to locate the perfect home and walk you throughout the process and be sure everything is in good order and you successfully close on the home of your dreams.


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Posted by

John Herman

Licensed Illinois Managing Broker

Property Up Inc.

Call Now  (847) 847-4711 For Real Estate Service.



Awarded as top 3% of all Agents by Chicago magazine - 5 Star Award winner 5 Years straight - 2011, 2012, 2013, 2014 & 2015!!!


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Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

Good morning 

Thank you for sharing your information with us John Herman 

Have a great day.

Saturday April 20, 2019.

Apr 20, 2019 04:38 AM #1
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

John, you have provided lots of valuable information for those wanting to know what is expected when buying a home.

Apr 26, 2019 05:41 PM #2
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John Herman

Licensed Illinois Managing Broker- Property up Inc
Licensed Illinois Barrington Managing Broker
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