How do I know how much house I can afford?
When it comes to finances, buying a house is something that should not be taken lightly. If you end up purchasing something that you later on can’t afford, it could severely hurt your credit score and limit your ability to buy a home in the future. When thinking about how much you can afford to spend on a house, there are two primary things that you should factor into the equation.
1) What is your monthly income after expenses like food, student loans, or auto insurance?
2) How much do you have available and are willing to spend on the down payment?
Ultimately, it is up to you to make the decision on how much of your hard-earned savings you want to put into a house vs. how much you should set aside for a rainy day.