It’s easy to figure out how much home you can afford, right?
After all, you’re renting right now.
And all you need to do is find a house that costs about the same as your rent does.
Not so fast, though. When you’re buying a home in Grand Junction or any of the surrounding communities, you need to know exactly how much home you can afford before you buy – or you’ll be looking at a huge headache later.
The amount you can actually afford may be quite a bit different from what you’re paying in rent, so here’s what you need to know.
How Much Home Can You REALLY Afford?
Work through your total expenses right now. Ask yourself how much you spend on:
- Gas for your commute to work or for entertainment
- Lawn care (in most cases, renters pay nothing)
- Maintenance in your apartment (again, renters usually don’t pay for maintenance)
- Repairs around your rented home
- Renter’s insurance
- Homeowners’ association dues
When you buy a house, you’re responsible for lawn care, maintenance, and HOA dues. You’re also responsible for major repairs, which you typically don’t have to pay for when you’re renting.
What Your Lender Looks at to Determine How Much You Can Borrow
Your lender will look at your expenses, your current debt-to-income ratio, and how much money you make to determine whether you’re eligible for a loan.
That doesn’t mean you can actually afford that much, though. You need to plan for HOA dues, maintenance costs, homeowner’s insurance, repairs, and everything else that costs cash when you own a home. You’ll also need to plan for mortgage insurance if you’re not putting down 20 percent, and for other expenses (including how much you’ll spend on your commute if you’re buying a home farther from where you work).
So what do the experts suggest?
Spend less than you think you can afford.
And while you’re here, you can start looking for Grand Junction homes for sale that fit within your budget. Just use the links below to begin your search.
- Grand Junction, Colorado homes for sale from $100k to $200k
- Grand Junction, CO real estate from $200k to $300k
- Homes for sale in Grand Junction between $300k and $400k
- Grand Junction real estate listings between $400k and $500k
- Grand Junction, Colorado homes for sale from $500k to $600k
- Grand Junction, CO real estate from $600k to $700k
- Homes for sale in Grand Junction between $700k and $800k
- Grand Junction homes for sale from $800k to $900k
- Grand Junction, Colorado homes for sale from $900k to $1 million
- Grand Junction, CO real estate listings over $1 million
When you’re ready, call us at 970-765-4135 or get in touch with us online. Tell us what you want from your next home and we’ll start looking right away.