How Much House Can I Afford? A Simple Guide for Virginia Homebuyers
One of the first things almost every homebuyer wants to know is:
“How much house can I afford?”
And while I could give you a mortgage calculator and send you on your way, there’s a much better way to figure it out.
Because the amount a lender says you can qualify for and the amount you actually want to spend every month aren't always the same thing.
Start With the Monthly Payment
Instead of starting with:
“What's the maximum house I can buy?”
I like to start with:
“What monthly payment feels comfortable for you?”
That gives us a much better starting point.
Your total monthly housing payment can include:
Principal and interest
Property taxes
Homeowners insurance
Mortgage insurance, if applicable
HOA or condo dues
Two $450,000 homes can have surprisingly different monthly payments depending on taxes, insurance, HOA fees and the financing strategy.
Your Income Isn't the Only Thing That Matters
Let's say two buyers both make $100,000 per year.
That doesn't necessarily mean they'll qualify for the same mortgage.
One might have:
A $700 car payment
Student loans
Credit card balances
While the other has very little monthly debt.
Lenders look at your income and your monthly obligations when determining how much mortgage you may qualify for.
Your credit, down payment and loan program can also affect the numbers.
How Much House Can You Afford on a $100K Salary?
This is where I want buyers to be careful with online calculators.
There isn't one universal home price for someone earning $100,000.
Your comfortable buying range could change significantly based on your debts, interest rate, taxes, insurance, down payment and loan program.
That's why I would rather run three scenarios for you:
Comfortable: A payment you know fits easily into your budget.
Target: The range where you'd ideally like to shop.
Maximum: What you could potentially qualify for if you found the right home.
Now you can shop with an actual strategy instead of guessing.
Get Pre-Approved Before You Fall in Love With a House
One of the worst times to figure out your buying power is after you've already found the house you want.
Before you start seriously shopping, let's look at your numbers.
A good mortgage conversation isn't just:
“Here's what you're approved for.”
It should be:
“Here are your options, here's what they cost, and here's what I think you should consider.”
Want to Know Your Number?
Let’s connect, call or text me at 757-740-0292 or email me tellard@fhmtg.com.
I'll help you figure out a price range and monthly payment that actually makes sense for you.