The general rule is that you can buy a home that costs about two-and-one-half times your annual salary. A good real estate agent or lender can determine how much you can afford and estimate the maximum monthly payment based on the loan amount, taxes, insurance and other expenses. Your real estate agent can help you to figure out now how your income, debts, and expenses can affect what you can afford, and how much you may be able to borrow to purchase a home, and even prepare an estimated settlement sheet for homes you like.
In the Jacksonville area, REALTOR® Max McDaniel often suggest that a buyer begin the pre-qualification for a mortgage with the buyer’s personal bank. If the buyer is or can qualify to be a member of a local credit union, which she can recommend to her clients/customers, he/she may find that facility will pay up to $5,000.00 of the buyer’s closing costs.