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Figuring Out How Much Home You Can Afford

When you begin your homebuying journey, it’s important to figure out just how much home you can afford.

That means looking at how much money you earn and then coming up with how much you can comfortably spend each month in a mortgage payment.

You will want to add up your current monthly expenses. You will also want to estimate how those may change if you move into a home of your own. You will also want to factor in maintenance and repairs.

Then you may have to distinguish between your wants and your needs. This could result in having to make sacrifices, such as less square footage, to afford a home within your budget.

“You need to make sure that payment can work for you,” said Mosi Gatling. She is the senior vice president of strategic growth and expansion at New American Funding. “You do not want to get into a home and not be able to [make] the payments.”

Mosi Gatling NMLS# 557166

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Author

Editorial Director, New American Funding

Clare Trapasso is the editorial director at New American Funding. She was previously the Executive News Editor for Realtor.com and a reporter for a Financial Times publication, the New York Daily News, and the Associated Press.