How much can you afford?
A Step-by-Step Home Buying Guide for your Iowa Home
This is probably one of the most important steps to buying your home. It is critical that you prudently analyze how much you will be able to afford. Creating a budget is the best way to get started. This budget can be used to determine the monthly payment you can comfortably handle and will allow you to feel informed and educated when you begin the home buying process.
Follow these tips to help you figure out how much you can afford to spend on a home:
Start by tracking your income and expenses in a spreadsheet or one of the various websites available to help with this.
Categorize your expenses between fixed and discretionary
Figure out your debt to income ratio
Start saving for a down payment
Review your credit history and credit score through one of the credit bureaus or talk to your local banker. If needed, work to repair your credit by addressing any unpaid debts, and credit card balances.
All of these tips are great to consider before deciding to buy. We advise you to speak with our preferred lender who will typically determine how much money to loan you based on your income, expenses, credit reports, and funds available for a down payment. Contact Dynasty Partners today, and we can refer you to our preferred lender in Des Moines.