Knowing what you can afford is crucial when looking for a new home and estimating your buying power. Of course, there are many other factors to consider. However, understanding your price range is essential to help you avoid experiencing the letdown of getting your heart set on a house that is too expensive to live comfortably within your budget.
Knowing your price range also narrows the possibilities for your consideration. It saves time, allowing you to target the right property and make wisely informed decisions about the new home you buy that you’ll be happy with for years.
If you’re budgeting for a new home and have been wondering where you really stand, read on as we explore how to determine how much house you can afford in Oklahoma City.
Income
Your total compensation before taxes or deductions, known as your gross income, is typically used for lenders to determine their approval of the mortgage amount, which tells you how much house you can afford in Oklahoma City. At Kelly Kingston Homes, our real estate agents can help you understand how to calculate your debt-to-income ratio and create a working budget to help you buy your new home.
Debt
Another factor that impacts a lender’s determination on how much house you can afford in Oklahoma City is any existing debt payments. To help you buy your new home, the real estate agents at Kelly Kingston Homes will help you understand what lenders look for when reviewing your debt and some steps you can take to lower your debt-to-income ratio.
Monthly Expenses
Your monthly expenses also determine how much house you can afford in Oklahoma City.
At Kelly Kingston Homes, our real estate agents suggest buyers follow the 28% rule to help you buy their new home, looking for properties that keep their mortgage payments at or below 28% of their gross monthly earnings.
Credit History
Your credit history influences your ability to attain credit, which lenders use to determine how much house you can afford in Oklahoma City and the interest rate you will pay on the mortgage.
At Kelly Kingston Homes, our real estate agents know that understanding what lenders look for in your credit history will help you buy your new home and avoid blunders that could cost you more in interest or even a denial.
Pre-Approval Process
One of the best ways to help you buy your new home is to get pre-approved for a loan to determine how much house you can purchase in Oklahoma City. At Kelly Kingston Homes, our real estate agents can help you understand the factors influencing your readiness to purchase.
At Kelly Kingston Homes, our real estate agents know all the steps new home buyers should take to determine how much house they can afford in Oklahoma City. In addition, the experienced agents at Kelly Kingston Homes can help you understand a great deal about costs new home buyers may face after the purchase. In addition, the highly-seasoned real estate agents at Kelly Kingston Homes can help you understand the market trends affecting interest rates and how loan length can affect affordability. The agents at Kelly Kingston Homes also cover other factors with new home buyers in Oklahoma City, such as the annual property taxes from prior years and what you can expect to pay in homeowner’s insurance, maintenance, and other incidentals. And don’t forget to ask about our current inventory of the best homes available in Oklahoma City. From understanding how to budget for your new home to everything that influences your overall cost, you can rely on the pros at Kelly Kingston Homes to help you find a deal you will feel great about and a home that perfectly fits you and your budget. Contact Kelly Kingston Homes at (405) 521-1817.