To help you get a more accurate number, I can run specific calculations if you'd like to share: Your ? Your total monthly debt payments ? How much you have saved for a down payment ? Your approximate credit score range?
Buying power is the maximum amount you can spend on a home based on your financial profile. It combines your available for a down payment with the maximum loan a lender will grant you. 🏗️ The 3 Pillars of Buying Power 1. The 28/36 Rule Lenders typically follow these debt-to-income (DTI) ratios: calculate home buying power
Example: ($8,333 x 0.36) - $400 car payment = Step 3: Factor in "Hidden" Costs To help you get a more accurate number,
Keep 1%–3% of the home's value in savings for annual repairs. Your approximate credit score range
Standard for many first-time buyer conventional loans.
Your total monthly debt payments (mortgage + car loans + student loans + credit cards) should not exceed 36% of your gross monthly income. 2. Down Payment Amount 3.5%: Minimum for FHA loans.