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How Much House Can I Afford?

The first logical question of a home buyer, is naturally: “How much house I can afford?” The best way to figure this out is to start with how much you can afford on total housing costs each month. This is what a Loan Officer will base the home price on

Since various factors in each buyer’s personal financing is different, the same house can have different monthly expenses for different people. How? If one person has a credit score of 720 and another has a credit score of 580, the person with the better score will be rewarded with lower fees and interest because they are statistically more likely to pay back the loan on time.

The reason we focus on monthly payments instead of the total price of the house, is because different houses at identical prices can have vastly different monthly costs. A $150,000 house in Altoona may have a tax bill that is so much higher than a $175,000 house in Eau Claire, that the payments on the more expensive house might actually be lower!

Your Loan Officer will give you a price range instead of a price cap for this reason. Click here to find a competent local lender to see how much house you can afford. The pre-approval process is very easy.