Income, Credit & Home Loans: Buying a House : Income Tips When Buying a House


Hello! My name is Brett Staggs and on behalf
of Expert Village, I am going to be telling you how much you can afford for a first time
home loan. When trying to buy your very first home and you are trying to determine how much
house can I actually afford, one of the first steps you should probably take is look at
your annual income. That is how much you make in a year. You take that number and you multiply
by 3. You take your annual income and multiply by 3, that is the number you should be really
sort of honing in on for a purchase price for your home. What that allows you to do
is say okay, with this purchase price of a home, I know with my income I will be able
to afford the mortgage plus taxes, plus insurance and even mortgage insurance if your loan requires
it. This is a very useful tool to let your Realtor know that here is the price range
that I can afford.

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