Keep 1%–3% of the home's value in savings for annual repairs.
Set aside 2%–5% of the home price for fees; don't use this money for the down payment.
A bank's pre-approval letter is the only way to "lock in" your official buying power before shopping. calculate home buying power
Example: $2,600 - $650 = Step 4: Use a Mortgage Table
Subtract roughly from that max payment to account for property taxes and insurance. Keep 1%–3% of the home's value in savings
Check what a $1,950 principal/interest payment buys at current rates. At a 6.5% interest rate, $1,950 supports a loan of approximately . Step 5: Add Your Down Payment Add your saved cash to the loan amount.
To help you get a more accurate number, I can run specific calculations if you'd like to share: Your ? Your total monthly debt payments ? How much you have saved for a down payment ? Your approximate credit score range? Example: $2,600 - $650 = Step 4: Use
Multiply gross income by 0.36 (36%) and subtract existing monthly debts.