January 1, 2021


It is easy to feel overwhelmed by all the decisions that go into purchasing a new house. After all, a home is a significant investment that you will have for many years. One of the most critical questions you must ask yourself for home buying success: Can I afford it?


Lenders commonly base mortgage readiness on these five elements:

  • Income Stability - income that can be verified and has a two-year history
  • Debt-to-Income Ratio - Lenders prefer that the ratio of your combined debt and housing costs be no more than 36% of your income
  • Loan to value -lenders often prefer to see your loan amount at 80% of the value of your property or less, which is the reason that most loans encourage buyers to put down a 20% down payment
  • Property Appraisal - a professional evaluation of your property's value
  • Credit History - a report of your payment habits that the lender will review


When buying a home, you need to have your budget in mind and know what kind of monthly payment you would make you feel financially comfortable. Be sure to consider your desired lifestyle; whether it is a yearly family vacation or private education, you don't want to sacrifice your life's quality to funnel as much cash as possible into a single financial goal.

What kind of home are you looking to purchase? It may help make a list of your must-haves, e.g., three bedrooms, two baths, for example, and make a list of features you want in your new home. A list will help you stay focused and ensure you get the home you need at a price that's right for you.


As your North Florida real estate experts, Poole Realtors® know that it can be quite a challenge to find the home of your dreams while keeping within your budget. There are many factors to consider, so call our professional team and let us help you take the guesswork out of home buying.


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