“How much house can I afford” is a question with no one answer. Depending on whom you ask, you are bound to get a different answer each time.

It’s not like the question “What’s ‘1 + 1’?” because that will always be “2.” There is no magical dollar amount for the “perfect” home. How much home you can afford depends on many unique factors–your location, income, savings, personal preferences, and more.

Let’s filter out some personal preferences and boil it down to the specifics that everyone should follow to not only buy a home, but to also find out how much home you can afford. For starters, you should be debt-free AND have three to six months of expenses saved in addition to your down payment (which is usually 20 percent of the home’s total home value). This cushion of money in the bank will keep you from losing your home in the event of employment loss or illness.

Use this checklist as a way to find out if the house you want, is one you can afford:

• Can I make at least 10 percent–but preferably a 20 percent–down payment?
• Can I afford to take out a 15-year fixed-rate loan?
• Will the house payments be at or below 25 percent of my monthly income?
• Is my real estate agent one I can trust?

If you cannot answer “Yes” to these questions, then the house you have your eye on may not be the one of your present-day financial dreams.

For all of your home loan needs throughout Solana Beach and San Diego County, as well as all of California, contact Elvin Wesley at Ranch & Coast Mortgage Group Inc. We have the experience needed to make sure you get the right mortgage.