On 8/17/2020 we did a radio show talking about a Money Magazine article. This article talked heavily about the proper way to buy a house. Buying a house can be a very happy and exciting time or a frustrating financial trap.
Buying a home is one of the most expensive purchases most people make in their lives. But before signing any documents and letting your friends and relatives know about this huge financial milestone, there is a very important factor which tends to get overlooked by a lot of future homeowners: not knowing how much house they can afford.
It is completely understandable that many of us allow our excitement and emotions to take over during our home buying journey; especially if you find the house of your dreams. When this happens, it’s easy to forget about the real numbers, which can harm you down the road.
A good way to start figuring out how much house you can afford is by using the 28%/36% rule with your monthly gross income (MGI). 28% represents the portion of your MGI that goes to your mortgage expenses while 36% represents the portion of your MGI that goes to all of your other debt obligations. To be on the safe side, get in touch with your preferred lender to get an idea of what loan amount you can qualify for.
For more on a financially savvy way to buy a house, click on the link to view the article posted by Money Magazine https://money.com/get-items-removed-from-credit-report/ or visit our YouTube channel to watch our 8/17/2020 radio show https://youtu.be/UHcL_nB485I