Home affordability is significantly impacted by three factors: income, credit score, and down payment. Your income is a major factor in determining how much you can borrow and the size of your mortgage payment. A good credit score can also help you get a lower interest rate and a higher loan amount. Lastly, having a larger down payment will reduce the amount of money you need to borrow, resulting in a lower mortgage payment.
1. Income: Home affordability is greatly affected by how much money you earn. The more money you earn, the more you can put towards a mortgage payment.
2. Credit Score: A good credit score is a key factor in determining how much a lender is willing to lend you for a home purchase. Your credit score will affect the interest rate you receive, as well as the loan amount you are eligible for.
3. Down Payment: The amount of money you have saved for a down payment directly affects the amount of money you can borrow for a home purchase. A larger down payment will reduce the amount of money you need to borrow, resulting in a lower monthly mortgage payment.
If you have questions, let’s connect. You’ll also want to make sure you have a trusted lender so you can explore your financing options. You may be closer to owning a home than you think.