Most would-be homeowners can afford a mortgage equal to two to two and a half times their yearly gross income. A household earning $100,000 per year may only afford a mortgage in the range of $200,000 to $250,000 using this method. This estimate, however, should be used merely as a benchmark.
There are a number of other considerations that must be made before settling on a particular piece of real estate. To begin, it’s helpful to know how much your lender believes you can pay (and how it arrived at that estimation).
Second, you need to do some soul-searching to determine the sort of ho