If you are among those who have visited Houston and wish you lived here, you are not alone. The weather is nice and sunny, home prices are reasonable, and you live near other amazing cities like Dallas, San Antonio, and Austin.
If a move to Houston has been decided, it would be good to know how much house you can afford before shopping for your new home.
For a first-time homebuyer in Houston, you don’t want to commit to a long-term loan and discover that you’ve jeopardized your finances because you borrowed too much.
Let’s find out how a home affordability calculator can help determine how much home you can afford in Houston.
If you are among the majority of Americans applying for a loan to buy a house, a home affordability calculator can help you take out a loan within your budget.
Here are some pertinent information you need to add to your calculator:
Income plays a significant role in how much house you can afford. The more income you have, the bigger loan amount you can get depending on your current debt situation.
Another major factor that impacts how much you can afford and if you get approved is your DTI or debt-to-income ratio. DTI shows lenders if you are overextending yourself and cannot make payments on your loan.
Your debt situation can give lenders an idea of how much they can approve for your loan. If you have a car payment, student loan, and credit card payments, lenders will analyze how these may affect your mortgage payments.
If you put down a larger amount upfront, the more house you can afford. A down payment of 20% can help you avoid PMI payments when you apply for a conventional loan. This means you have more cash to pay towards your principal and interest.
Higher credit scores also mean the more house you can afford. Excellent scores also give you leverage to negotiate for better interest rates which can translate to a higher loan amount.
If you want to know what credit score is needed to get a home loan, our loan officers can provide you with the latest requirements for each loan type you may be interested in. Reach out by calling or sending a message today.
It’s normal for home buyers to want the most they can get on their loan. As long as you’ve done the numbers and see that it works within your budget then you can move forward with getting approval for a higher loan amount.
Once you’ve got your budget and finances figured out, it’s time to go house hunting.
For the best loan terms and rates, work with our loan officers at Reliance Financial Group.
We’ve helped numerous borrowers become Houston homeowners.
Give us a call or send us a message to learn more.
We've been helping customers afford the home of their dreams for many years and we love what we do.
Company NMLS: 137288
3501 Rochester Rd
Troy, Michigan 48083
Phone: (248) 687-5250
Hours of Operation: 9:00 AM to 6:00 PM (EST)
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