How much house can you afford?
Purchasing a home is an exciting time, but it can also be a daunting task. Mortgage rates, available inventory, inflation and local conditions are all factors that impact housing prices. Economic volatility fluctuations have made homeownership out of reach for many people. But today the real estate market is shifting, and prices are beginning to soften, leading many to wonder: Is today the day to put in an offer?
“The right time to buy is different for everyone,” said Todd Farley, senior vice president, mortgage sales and production manager for Commerce Bank. “Interest rates are rising, and some price points have softened; but demand for entry-level homes is still there. It’s important for buyers to know their price point, work with a lender to get preapproved and be prepared to act quickly.”
Understanding how much you can afford may be the most critical question when house hunting. It impacts your price range as well as both your monthly and long-term costs as a homeowner. So how do you determine how much mortgage you can afford — and will a lender say you’re eligible?
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