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, later on, you 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 of a house to buy, there are two primary things that you should take 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 to put your hard-earned savings into a house vs. how much you should set aside for a rainy day.