Roberta Oswald
Roberta Oswald, Valley Property Sales & ManagementPhone: (707) 339-0233
Email: [email protected]

Mortgages - What can I afford?

by Roberta Oswald 05/07/2023

Factors to consider when deciding if you're ready for a mortgage  featured image

As you enter the world of real estate, funding for your next home purchase stands on the forefront of the homebuying process. Understanding what you can afford may help you in starting your journey to find your next abode. 

What factors determine how much house can I afford?

To figure out your finances to determine how much home you can afford, consider these factors: 

  • Money you have saved up for a down payment and closing costs. 
  • Your monthly income, including your salary and from other sources. 
  • The debt you’ve accrued. 

The 28/36 rule - what it is & how it works

If you’d like to use a system to manage your finances, consider utilizing the 28/36 rule. With this method, you dedicate no more than 28 percent of your gross monthly income to household expenses such as utilities and mortgage payments. Your debt shouldn’t take over 36 percent of your gross income. 

Using this system helps you manage debts and financial duties, and demonstrates to mortgage lenders you can afford a monthly mortgage payment. 

Should I buy a house?

Before starting the home buying journey, it’s ideal to consider your overall standing to make sure you’re ready to purchase a home. 

Consider your credit score - a higher credit score may spell approval from more lenders and lower interest rates. Do you have adequate cash reserved to afford a down payment, closing costs and other fees associated with buying a home? By answering these questions you’ll get a better idea if homeownership is feasible in the near future. 

Purchasing a home takes effort and much consideration, so take your time during the process and figure out your finances to jumpstart your journey.

About the Author

Roberta Oswald

An enthusiastic polo player, aviatrix and fourth generation member of one of the oldest winery families in the Napa Valley, Roberta has lived in the Bay Area her entire life. She has over thirty years of experience in buying, selling and managing real estate in the residential, investment and commercial markets. Not content to just “get the job done”, she wants to exceed your expectations. Roberta believes in service with commitment. Utilizing the kind of knowledge that is obtained only through extensive life experience and an in-depth understanding of the area and local market, she works with you to provide maximum results. During her accomplished career, Roberta has refined important skills in communication, negotiation, attention to detail and sound business practices, all of which are vital to the success of her clients today. Please call Roberta directly at 707.339.0233 to discuss your real estate needs.