The OC Housing Specialist® Ultimate Guide to Buying, Selling, & Renting in Southern California

How Much House Can You Afford?

This is probably one of the first questions that crosses every potential buyer’s mind…How Much House Can I Afford?

Of course, in those early stages of curiosity and consideration, few people actually want to contact a lender and go through a formal loan process to get the actual answer.

The “what ifs” can really get the best of you — what if I don’t make enough money? What if my credit isn’t perfect? What if my employment hasn’t been long enough? There’s just so much hanging in the unknown. You don’t want to feel judged, or you may be afraid of disappointment and loss of your dreams if those worries prove to be right.

Screen Shot 2016-01-23 at 9.21.46 AM

Have no fear — I’m here to help gently guide you out of the anxiety and into a realistic groove of reasonable expectations. When the time is right, a knowledgable agent can refer you to a lender that specializes in whatever your specific concern/worry is to give you the best chance of buying your dream home.

First things first, right now you’re just curious about possibilities. So let’s get started…

According to, your mortgage payment should be between 25-45% of your post-tax income. To find out what that number range is for you, multiply your MONTHLY net income (take home) by .25 — this is the low (conservative) end of your range. Start again by multiplying your monthly net income by .45 — this is the high (liberal) end of your range. Together, these two numbers set the approximate price range for what monthly mortgage payments you may be able to afford (aka may be approved for).

Next, use an online Mortgage Loan Calculator and play with the numbers until you see the monthly payment fall within your projected range above. It’s that simple!



Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s


This entry was posted on January 23, 2016 by in Buying, DIY, Finance, Investment.

Follow me on Instagram

There was an error retrieving images from Instagram. An attempt will be remade in a few minutes.

%d bloggers like this: