What Can I Afford?

Unsure what you can afford? Your lender will decide what you can borrow, however, you ultimately decide what you can afford. 

Your lender will make determinations on what you are eligible to borrow based on averages and formulas. They will not understand the nuances of your spending patterns and lifestyle as well as you do. Be sure to leave room for the unexpected – for all of the opportunities you will have to spend money in and on your new home. 

Historically, an approved housing payment could not be more than 28% of the buyer’s gross monthly income. As home prices has risen, some lenders have responded by stretching this percentage as high as 50%. Be sure to think carefully about your budget when determining what you can afford! In the long run, your own peace of mind and security is paramount. 

Need help? We’d love to talk to you. Connect with Atherton Real Estate Group today!