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Here's how to be sure you can afford the house you want to buy.
- If you're looking to buy a home, there are several signs you're ready - you can make the full 20% down payment, you have a low debt-to-income ratio, and you know exactly how much a potential home could cost you each month, for starters.
- You're also ready if you know you'll still have an emergency fund, as well as money left over after your down payment for extra expenses.
- If you don't yet have these things, you might not be ready to buy.
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If you've ever thought about buying a house, you likely already know how expensive it can be. And if that's the case, you've probably come to realize how much work it can be to get ready to buy.
While housing prices have been on the rise, and trends in how buyers make down payments are changing, many looking to buy a home might feel that they're ready.
A few top questions to ask are the classics: Can you make the 20% down payment? Is your debt-to-income ratio low enough? And while answering "yes" to these questions might get you approved for the mortgage, there are a few other questions to ask to make sure you're financially ready to make that house your home.
Here are seven factors to consider to make sure you can truly afford the home you want to buy.
Can you afford your dream home? Use this calculator to find out:
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