Can you afford a home?

By
Real Estate Agent with Edina Realty

Rule of thumb:You can afford a home that costs about 2.5 times your yearly income.

Other factors to consider-

-How much money do you need for other bills?

    Such as utilities,doctors,groceries ,car payments,insurance,etc.

-How much do you have for a down payment?

    The typical minimun down payment is 3% of the total loan amount.

-How much will you need for closing costs and other payments?

     Be prepared to get out your checkbook.There are several costs-along with the down payment- that will     arise,such as earnest money,inspection and appraisal fees and insurance binders.

 

 

 

 

MN.Association of Realtors

Comments (1)

Todd Clark
eXp Realty LLC - Tigard, OR
Principle Broker Oregon

Good advise on preparing to have the check book ready. Buyers need to be advised of all costs involved in buying a home. Inspection, Earnest Money, Down Payment & Closing Costs. They are to often surprises when their agent didn't tell them all the costs and they get to the closing table and have that look on their face? Why do I need to get my check book out?

 

Mar 24, 2007 08:19 AM