{"id":28041,"date":"2021-11-18T12:21:22","date_gmt":"2021-11-18T20:21:22","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=28041"},"modified":"2024-03-12T09:33:34","modified_gmt":"2024-03-12T16:33:34","slug":"buyer-what-house-can-i-afford","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/buyer-what-house-can-i-afford\/","title":{"rendered":"What House Can I Afford? Where to Buy, What to Buy, and How to Figure It All Out"},"content":{"rendered":"<p>The question of \u201cWhat house can I afford?\u201d is complicated. There\u2019s much more to buying a home than just being able to <a href=\"https:\/\/www.homelight.com\/blog\/buyer-can-i-afford-a-house\/\">afford the monthly payment<\/a> on your mortgage. If price were the only factor, there\u2019d be no need to look at different houses \u2014 you could simply purchase the first one available in your <a href=\"https:\/\/www.homelight.com\/blog\/buyer-what-mortgage-can-i-afford\/\">price range<\/a>.<\/p>\n<p>Instead, it\u2019s important to consider the characteristics of a house that will best suit your needs, lifestyle, <i>and<\/i> your budget. What house can you afford in terms of size, location, layout, and features?<\/p>\n<p>While we can\u2019t exactly answer this question for you, we can lend some guidance. With the help of real estate experts and location-based research, we\u2019re walking you through the process of how to evaluate exactly what type of house you can afford \u2014 and what \u201caffording\u201d a house actually means.<\/p>\n<figure id=\"attachment_28044\" aria-describedby=\"caption-attachment-28044\" style=\"width: 700px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/11\/what-house-can-i-afford-balcony.png\" target=\"_blank\"><img decoding=\"async\" width=\"666\" height=\"381\" src=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/11\/what-house-can-i-afford-balcony-666x381.png\" class=\"attachment-content size-content\" alt=\"A balcony of a house that you can afford.\" srcset=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/11\/what-house-can-i-afford-balcony-666x381.png 666w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/11\/what-house-can-i-afford-balcony-64x37.png 64w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/11\/what-house-can-i-afford-balcony-128x73.png 128w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/11\/what-house-can-i-afford-balcony-192x110.png 192w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/11\/what-house-can-i-afford-balcony-432x247.png 432w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/11\/what-house-can-i-afford-balcony-500x286.png 500w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/11\/what-house-can-i-afford-balcony.png 700w\" sizes=\"(max-width: 666px) 100vw, 666px\" \/><\/a><figcaption id=\"caption-attachment-28044\" class=\"wp-caption-text\">Source: (S O C I A L . C U T \/ Unsplash)<\/figcaption><\/figure>\n<h2>What determines personal home affordability?<\/h2>\n<p>What\u2019s considered \u201caffordable\u201d when it comes to housing has a different meaning for everyone. But, in general, how much home you can afford <i>according to a mortgage lender<\/i> is determined by:<\/p>\n<ul>\n<li>Your income<\/li>\n<li>Your debts<\/li>\n<li>Your credit history<\/li>\n<li>How much money you have saved for a <a href=\"https:\/\/www.homelight.com\/blog\/buyer-down-payment\/\">down payment<\/a> \u2014 which influences both your monthly <a href=\"https:\/\/www.homelight.com\/blog\/buyer-how-to-calculate-mortgage-payment\/\">mortgage payment<\/a> and whether you\u2019ll have to pay <a href=\"https:\/\/www.homelight.com\/blog\/what-is-pmi-can-you-get-rid-of-it\/\">mortgage insurance<\/a><\/li>\n<li>The mortgage terms you choose (length, interest type, loan type, etc.)<\/li>\n<li>The specifics of the property (residence type, location, etc.)<\/li>\n<\/ul>\n<p>To a certain extent, what you are personally <i>willing<\/i> to pay is also a factor. Buying at the very top of your budget can be financially risky, whereas buying at the lowest end can lead to dissatisfaction \u2014 especially if that saved money means accepting less space than you wanted, or taking on more <a href=\"https:\/\/www.homelight.com\/blog\/planning-your-perfect-home-renovation\/\">renovations<\/a> than you may have anticipated.<\/p>\n<p>We\u2019ll dive more into how to determine what is most important to you when choosing a house, but for most homebuyers, landing somewhere in the middle is the sweet spot. That said, with the low <a href=\"https:\/\/www.homelight.com\/blog\/buyer-compare-mortgage-rates\/\">interest rates<\/a> and <a href=\"https:\/\/www.homelight.com\/blog\/sellers-vs-buyers-market\/\">rising home prices<\/a> we\u2019re seeing in 2021, you might be able to think outside the box when it comes to choosing your next home.<\/p>\n<p>\u201cI think buyers today can be a little aggressive on not necessarily finding their forever house on the first purchase,\u201d says <a href=\"https:\/\/www.homelight.com\/agents\/jennifer-carstensen-tn-00317824\">Jennifer Carstensen<\/a>, a real estate agent in <a href=\"https:\/\/www.homelight.com\/memphis-tn\/top-real-estate-agents\">Memphis<\/a>, Tennessee, who works with 70% more single-family homes than the average agent in her area.<\/p>\n<p>She explains that with <a href=\"https:\/\/www.homelight.com\/blog\/what-is-home-equity\/\">home equity<\/a> increasing steadily, the house you\u2019re buying now doesn\u2019t necessarily have to be the last home you ever buy \u2014 nor does it necessarily need to appeal to hypothetical future buyers.<\/p>\n<p>\u201cLet\u2019s say a homebuyer wants to explore living downtown,\u201d Carstensen offers as an example. \u201cI would suggest, \u2018Hey, let\u2019s go for a one-bedroom right now.\u2019 Whereas 10 years ago, I would have said, \u2018Well, let\u2019s think about your future buyer and who that\u2019s going to be.<\/p>\n<p>\u201cThe conversation has shifted from spending time focusing on the future buyer in order to get the highest resale value to, \u2018We can be a little selfish today.\u2019 Let\u2019s not worry so much about your future buyer because the market is so great.\u201d<\/p>\n<p>In other words, it may be a good time to buy a house that you actually want based on your lifestyle today \u2014 instead of thinking in terms of an investment to resell down the road.<\/p>\n<h2>What else goes into home affordability?<\/h2>\n<p>Regardless of who ends up purchasing a particular house, there are certain factors that always influence the cost of a home.<\/p>\n<p>We\u2019ve all heard \u201c<a href=\"https:\/\/www.homelight.com\/blog\/location-location-location-what-matters\/\">location, location, location<\/a>\u201d in relation to real estate, and it\u2019s as true today as ever. Where a house is located impacts not only its sales price, but also the cost of <a href=\"https:\/\/www.homelight.com\/blog\/lower-property-tax\/\">property taxes<\/a> and <a href=\"https:\/\/www.homelight.com\/blog\/buyer-how-does-homeowners-insurance-work\/\">homeowner\u2019s insurance<\/a> \u2014 which are ongoing expenses.<\/p>\n<p>Other factors that go into a home\u2019s overall affordability include:<\/p>\n<ul>\n<li>Maintenance and repairs<\/li>\n<li>Size<\/li>\n<li>Floor plan<\/li>\n<li>Amenities (a garage, deck, <a href=\"https:\/\/www.homelight.com\/blog\/how-much-value-does-a-finished-basement-add\/\">finished basement<\/a>, and so on)<\/li>\n<li>Landscaping needs<\/li>\n<li>Risk of natural disasters (think flood zones or tornado regions)<\/li>\n<li>Construction materials<\/li>\n<\/ul>\n<p>So, bearing these factors in mind, let\u2019s take a closer look at what house you can afford depending on where in the United States you live.<\/p>\n<p>We\u2019ll use the <a href=\"https:\/\/www2.census.gov\/geo\/pdfs\/maps-data\/maps\/reference\/us_regdiv.pdf\">U.S. Census Bureau regions map<\/a> for reference, as well as the current statistic that the <a href=\"https:\/\/fred.stlouisfed.org\/series\/MEDSQUFEEUS\">median home size<\/a> in the U.S. is <b>1,736<\/b> square-feet.<\/p>\n<figure id=\"attachment_28045\" aria-describedby=\"caption-attachment-28045\" style=\"width: 700px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/11\/what-house-can-i-afford-northeast.png\" target=\"_blank\"><img decoding=\"async\" width=\"666\" height=\"381\" src=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/11\/what-house-can-i-afford-northeast-666x381.png\" class=\"attachment-content size-content\" alt=\"A tree line near a house you can afford.\" srcset=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/11\/what-house-can-i-afford-northeast-666x381.png 666w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/11\/what-house-can-i-afford-northeast-64x37.png 64w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/11\/what-house-can-i-afford-northeast-128x73.png 128w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/11\/what-house-can-i-afford-northeast-192x110.png 192w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/11\/what-house-can-i-afford-northeast-432x247.png 432w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/11\/what-house-can-i-afford-northeast-500x286.png 500w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/11\/what-house-can-i-afford-northeast.png 700w\" sizes=\"(max-width: 666px) 100vw, 666px\" \/><\/a><figcaption id=\"caption-attachment-28045\" class=\"wp-caption-text\">Source: (Peter James Eisenhaure \/ Unsplash)<\/figcaption><\/figure>\n<h2>What house can I afford in the Northeast?<\/h2>\n<p>The median sales price of existing homes in the Northeast census region \u2014 which includes New England and the Middle Atlantic sub-regions \u2014 <a href=\"https:\/\/fred.stlouisfed.org\/series\/HOSMEDUSNEM052N\">as of Q3 2021<\/a> is <b>$387,200<\/b>. For <a href=\"https:\/\/fred.stlouisfed.org\/series\/MSPNE\">new-construction homes<\/a>, that median figure increases to <b>$502,300<\/b>.<\/p>\n<p>As we\u2019ve just explained, location matters with real estate. Within the Northeast region, the median home prices vary quite a lot depending on your <a href=\"https:\/\/www.nar.realtor\/research-and-statistics\/housing-statistics\/metropolitan-median-area-prices-and-affordability\">metro area<\/a>:<\/p>\n<ul>\n<li>$176,100 in Syracuse, New York<\/li>\n<li>$309,800 in Philadelphia, Pennsylvania<\/li>\n<li>$428,800 in Portland, Maine<\/li>\n<li>$663,300 in Boston, Massachusetts<\/li>\n<\/ul>\n<h2>What house can I afford in the South?<\/h2>\n<p>The Southern census region is rather sweeping with its geography, comprising the South Atlantic, East South Central, and West South Central sub-regions.<\/p>\n<p>For existing homes, the median sales price <a href=\"https:\/\/fred.stlouisfed.org\/series\/HOSMEDUSSOM052N\">across the South<\/a> is <b>$307,500<\/b>. For <a href=\"https:\/\/fred.stlouisfed.org\/series\/MSPS\">new-construction<\/a>, the median price is <b>$367,800<\/b>.<\/p>\n<p>Taking a look at a few different <a href=\"https:\/\/www.nar.realtor\/research-and-statistics\/housing-statistics\/metropolitan-median-area-prices-and-affordability\">metro areas<\/a>, those median prices are quite varied:<\/p>\n<ul>\n<li>$234,500 in Columbia, South Carolina<\/li>\n<li>$315,000 in Atlanta, Georgia<\/li>\n<li>$515,100 in Austin, Texas<\/li>\n<li>$571,500 in Washington, D.C.<\/li>\n<\/ul>\n<h2>What house can I afford in the Midwest?<\/h2>\n<p>The Midwest is divided into West North Central and East North central, but the median sales price of <a href=\"https:\/\/fred.stlouisfed.org\/series\/HOSMEDUSMWM052N\">existing homes<\/a> is <b>$265,300<\/b>, and for <a href=\"https:\/\/fred.stlouisfed.org\/series\/MSPMW\">new construction<\/a> that price is <b>$347,100<\/b>.<\/p>\n<p>Here\u2019s a <a href=\"https:\/\/www.nar.realtor\/research-and-statistics\/housing-statistics\/metropolitan-median-area-prices-and-affordability\">metro-area<\/a> breakdown of the Midwest:<\/p>\n<ul>\n<li>$247,200 in Omaha, Nebraska<\/li>\n<li>$256,300 in Detroit, Michigan<\/li>\n<li>$348,600 in Chicago, Illinois<\/li>\n<li>$369,200 in Madison, Wisconsin<\/li>\n<\/ul>\n<h2>What house can I afford in the West?<\/h2>\n<p>Split between Pacific and Mountain sub-regions, the West census region median sales price of <a href=\"https:\/\/fred.stlouisfed.org\/series\/HOSMEDUSWTM052N\">existing homes<\/a> is <b>$506,300<\/b>, while new construction homes price at a median of <b>$522,400<\/b>.<\/p>\n<p>Unsurprisingly, different <a href=\"https:\/\/www.nar.realtor\/research-and-statistics\/housing-statistics\/metropolitan-median-area-prices-and-affordability\">metro areas<\/a> around the West vary in their own median prices:<\/p>\n<ul>\n<li>$469,100 in Boise, Idaho<\/li>\n<li>$545,600 in Portland, Oregon<\/li>\n<li>$618,600 in Denver, Colorado<\/li>\n<li>$756,000 in Los Angeles, California<\/li>\n<\/ul>\n<figure id=\"attachment_28046\" aria-describedby=\"caption-attachment-28046\" style=\"width: 700px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/11\/what-house-can-i-afford-kitchen.png\" target=\"_blank\"><img decoding=\"async\" width=\"666\" height=\"381\" src=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/11\/what-house-can-i-afford-kitchen-666x381.png\" class=\"attachment-content size-content\" alt=\"A kitchen in a house you can afford.\" srcset=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/11\/what-house-can-i-afford-kitchen-666x381.png 666w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/11\/what-house-can-i-afford-kitchen-64x37.png 64w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/11\/what-house-can-i-afford-kitchen-128x73.png 128w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/11\/what-house-can-i-afford-kitchen-192x110.png 192w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/11\/what-house-can-i-afford-kitchen-432x247.png 432w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/11\/what-house-can-i-afford-kitchen-500x286.png 500w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/11\/what-house-can-i-afford-kitchen.png 700w\" sizes=\"(max-width: 666px) 100vw, 666px\" \/><\/a><figcaption id=\"caption-attachment-28046\" class=\"wp-caption-text\">Source: (Brian Zajac \/ Unsplash)<\/figcaption><\/figure>\n<h2>What should I consider when thinking about affordability?<\/h2>\n<p>So, we\u2019ve looked at a range of home prices around the U.S. \u2014 but what does that really mean for you?<\/p>\n<p>Well, no matter what home price statistics say about what is selling and where and for how much, the bottom dollar isn\u2019t everything. When thinking about what house you can afford, you should be thinking in terms of your daily life \u2014 and understand that sometimes wants and needs are more similar than you might think.<\/p>\n<h3>Gain clarity on needs&#8230;<\/h3>\n<p>\u201cYou may <i>need<\/i> two bedrooms, but you really <i>want<\/i> four because you want an extra bedroom and an office \u2014 so we\u2019ll talk about your lifestyle.\u201d says <a href=\"https:\/\/www.homelight.com\/agents\/tom-cooper-fl-sl3383810\">Alice Cooper<\/a>, a Daytona Beach-based top agent who doesn\u2019t always take what her clients say at face value.<\/p>\n<p>\u201cSometimes someone says they\u2019ve got to have four bedrooms, but it turns out they don\u2019t really need the fourth bedroom; what they need is a dedicated office. So now we can look at three-bedroom homes that maybe have an office, or an extra room somewhere that could be converted to an office.\u201d<\/p>\n<p>In other words, getting more clear on what you actually need in your home for it to be both comfortable <i>and<\/i> functional is key.<\/p>\n<p>If you&#8217;re working from home regularly and would benefit from a quiet place to take calls and leaf through paperwork somewhere other than your kitchen table, it\u2019s okay to shift from simply wanting an office to deciding that that space is a valid need.<\/p>\n<p>If you\u2019ve been promising your kids a dog for the past three years \u201cjust as as soon as we have a yard,\u201d it\u2019s okay to include a <a href=\"https:\/\/www.homelight.com\/blog\/how-much-does-it-cost-to-build-a-fence\/\">fenced backyard<\/a> on your list of must-haves.<\/p>\n<p>If your spouse is an enthusiastic home cook and wants a more usable area to prepare meals, it\u2019s okay to prioritize a kitchen with counter space.<\/p>\n<h3>\u2026 And on wants<\/h3>\n<p>That said, unless your budget is unlimited, you will need to parse out which needs are actual needs, and which ones are passionate wants.<\/p>\n<p>Or, perhaps, a misunderstood want.<\/p>\n<p>\u201cI had a client who told me they didn\u2019t want any neighbors, they wanted some acreage,\u201d says Cooper. \u201cAfter looking at some property out in the county, we realized it wasn\u2019t neighbors that were a bother, it was that they wanted to have a really nice view from the back of their home. They ended up on a golf course in a community with a beautiful, expansive view.\u201d<\/p>\n<p>One helpful tactic for discerning a want from a need is to think of each in terms of being a dealbreaker.<\/p>\n<ul>\n<li>If you think you need a two-car <a href=\"https:\/\/www.homelight.com\/blog\/garage-remodel\/\">garage<\/a>, would a home that checks every other box be struck from the list if it only has a one-car garage?<\/li>\n<\/ul>\n<ul>\n<li>A formal dining room might be nice to have, but would it be a dealbreaker if an otherwise perfect property lacked that dedicated space?<\/li>\n<li>That house you keep thinking about that only has two full baths \u2014 are you really going to let it go because there\u2019s no downstairs <a href=\"https:\/\/www.homelight.com\/blog\/buyer-what-is-a-half-bath\/\">half-bath<\/a>?<\/li>\n<\/ul>\n<p>Remember, too, that sometimes a perceived downfall of a home can be remedied later.<\/p>\n<p><a href=\"https:\/\/www.homelight.com\/blog\/buyer-appraisal-value-of-unfinished-basement\/\">Unfinished basements<\/a> can be finished, dated bathrooms can be remodeled, and disappointing refrigerators can be replaced. It\u2019s worth keeping an open mind to afford an otherwise great home.<\/p>\n<h2>What about floor plans? Is layout really that important?<\/h2>\n<p>There are countless ways to configure a home and its interior, so floor plan ultimately comes down to preference and, again, your lifestyle.<\/p>\n<p>While <a href=\"https:\/\/www.homelight.com\/blog\/buyer-open-floor-plans\/\">open floor plan<\/a> homes remain popular, they can be noisy and distracting. Some people love having their kitchen open to the living room to interact with family and guests while cooking \u2014 others prefer the sanctity of a more private cooking space.<\/p>\n<p>A two-story home is ideal for creating separation between living space and private bedrooms, but stairs can hamper mobility.<\/p>\n<p>A one-level home makes for an easier <a href=\"https:\/\/www.homelight.com\/blog\/buyer-moving-advice\/\">move-in<\/a> process and more convenient movement throughout, but do you really want your main bedroom sharing a wall with your teenager\u2019s room?<\/p>\n<p>Remember, size isn\u2019t everything. A thoughtfully designed floor plan can maximize use of space, and just because a home is 3,000 square feet, that doesn\u2019t mean the square footage is going to be as functionally spacious as you\u2019d expect.<\/p>\n<p>It\u2019s impossible to walk through every nuance of every floor plan here, but be mindful during your home search process and think through the functionality of certain details. Some quirks you can probably get used to \u2014 that <a href=\"https:\/\/www.homelight.com\/blog\/what-negatively-affects-home-appraisal\/\">Jack-and-Jill bathroom<\/a> from the \u201980s perhaps less so.<\/p>\n<figure id=\"attachment_28047\" aria-describedby=\"caption-attachment-28047\" style=\"width: 700px\" class=\"wp-caption alignnone\"><a href=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/11\/what-house-can-i-afford-kitchen-1.png\" target=\"_blank\"><img decoding=\"async\" width=\"666\" height=\"381\" src=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/11\/what-house-can-i-afford-kitchen-1-666x381.png\" class=\"attachment-content size-content\" alt=\"A large house that you can afford as a fixer upper.\" srcset=\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/11\/what-house-can-i-afford-kitchen-1-666x381.png 666w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/11\/what-house-can-i-afford-kitchen-1-64x37.png 64w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/11\/what-house-can-i-afford-kitchen-1-128x73.png 128w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/11\/what-house-can-i-afford-kitchen-1-192x110.png 192w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/11\/what-house-can-i-afford-kitchen-1-432x247.png 432w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/11\/what-house-can-i-afford-kitchen-1-500x286.png 500w, https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/11\/what-house-can-i-afford-kitchen-1.png 700w\" sizes=\"(max-width: 666px) 100vw, 666px\" \/><\/a><figcaption id=\"caption-attachment-28047\" class=\"wp-caption-text\">Source: (Victoria Lea \/ Unsplash)<\/figcaption><\/figure>\n<h2>What if I want a bigger, better house?<\/h2>\n<p>So you\u2019ve determined what you actually need and want from a house, you\u2019ve talked to a <a href=\"https:\/\/www.homelight.com\/blog\/home-financing\/mortgage-loans\/\">mortgage lender<\/a> to figure out what you can afford on paper, and you\u2019ve found yourself an experienced <a href=\"https:\/\/www.homelight.com\/find-real-estate-agents\">real estate agent<\/a>. Great! You probably have a good idea now of what house you can afford.<\/p>\n<p>But what if you\u2019ve decided you want a bigger or otherwise better house than you can realistically afford right now?<\/p>\n<p>Well, there are a few things you can do to maximize your ability to afford more home \u2014 in whatever way \u201cmore\u201d means to you.<\/p>\n<h3>Buy a fixer-upper<\/h3>\n<p>If you\u2019re willing to get your hands dirty, you could look for a <a href=\"https:\/\/www.homelight.com\/blog\/reasons-to-consider-fixer-upper-home\/\">fixer-upper<\/a> home and save yourself some cash on the purchase.<\/p>\n<p>Cooper confirms that fixer-uppers are still \u201ca great entry point to build some instant equity in the property.\u201d Though she does warn that many sellers in 2021 are taking advantage of the hot <a href=\"https:\/\/www.homelight.com\/blog\/sellers-vs-buyers-market\/\">seller\u2019s market<\/a> and putting repair or renovation work into their homes before selling in order to maximize sales price.<\/p>\n<p>So, it may be more difficult to find a fixer-upper house at this time, but they\u2019ll always be out there somewhere if you have the patience \u2014 and the clear head \u2014 to wait for the right one.<\/p>\n<p>\u201cA lot of times when we have a house that is fully renovated and ready to go, we\u2019ll get <a href=\"https:\/\/www.homelight.com\/blog\/multiple-offers-highest-and-best\/\">multiple offers<\/a>, which can sometimes cause emotional bidding and lead to buyer\u2019s remorse,\u201d warns Carstensen. \u201cBut, typically, if you can find a house that is maybe a little overpriced for the market and a little bit dated, you can get into it at a lower price and then do some renovations yourself.\u201d<\/p>\n<p>Just remember that those repair costs will have to come from somewhere (spoiler alert: your pocket) and you\u2019ll need to be okay with the idea of living in a construction zone for the duration of your projects. It\u2019s often worth it to save cash and create the home you really want, but there\u2019s a reason why many homebuyers seek out a <a href=\"https:\/\/www.homelight.com\/blog\/buyer-what-is-a-turnkey-house\/\">move-in ready<\/a> property.<\/p>\n<h3>Improve your credit score<\/h3>\n<p>Generally speaking, the higher your <a href=\"https:\/\/www.homelight.com\/blog\/buyer-credit-score-for-home-loan\/\">credit score<\/a>, the better interest rates you\u2019ll qualify for on your mortgage. This can mean affording more home for the same price, so it\u2019s worth considering a strategy for <a href=\"https:\/\/www.homelight.com\/blog\/how-to-improve-credit-to-buy-home\/\">improving<\/a> your credit score \u2014 even if that means delaying your purchase by a few months.<\/p>\n<h3>Increase your income<\/h3>\n<p>It sounds obvious, but it\u2019s worth mentioning: The more money you make, the more home you can afford. Whether you take on a temporary second job to boost your <a href=\"https:\/\/www.homelight.com\/blog\/buyer-tips-for-saving-for-a-house\/\">down payment savings<\/a> or you finally have a conversation with your boss about that raise you\u2019ve earned, if you can increase your earnings, you may be able to increase the scope of your next home.<\/p>\n<h3>Decrease your debt<\/h3>\n<p>This one goes hand-in-hand with improving your credit, sure \u2014 but it also means you\u2019ll owe less money each month. Ergo? You can usually afford more house.<\/p>\n<p>Your mortgage lender can help talk you through this as they review your credit history during the <a href=\"https:\/\/www.homelight.com\/blog\/difference-between-mortgage-prequalification-preapproval\/\">prequalification process<\/a>.<\/p>\n<h3>Save up a bigger down payment<\/h3>\n<p>The more you can afford to put down on your home, the lower your monthly payment and, as we mentioned much earlier in this piece, the better your chances of avoiding \u2014 or at least shortening the term of \u2014 paying mortgage insurance.<\/p>\n<p>There are also lots of <a href=\"https:\/\/www.homelight.com\/blog\/buyer-down-payment-assistance\/\">down payment assistance programs<\/a> out there that can add to what you\u2019ve already saved (try Googling \u201cdown payment assistance [city, state]\u201d to get started), and there are even <a href=\"https:\/\/www.homelight.com\/blog\/buyer-zero-down-payment\/\">zero down payment<\/a> mortgages if that\u2019s something you\u2019d qualify for \u2014 but talk to your lender to determine what might be best for you.<\/p>\n<h3>Consider moving to a more affordable area<\/h3>\n<p>Whether it\u2019s another part of town or another region of the country, as we demonstrated with the home sales median prices across the U.S. census regions, housing prices vary widely depending on where the home is located.<\/p>\n<p>To really maximize your home bang for the buck, it may be worth looking into relocation.<\/p>\n<h2>What house can I really afford?<\/h2>\n<p>There are a number of variables that will influence what house you can afford, and some are more under your control than others.<\/p>\n<p>The best way to get started is to talk to your <a href=\"https:\/\/www.homelight.com\/find-real-estate-agents\">agent<\/a> and your mortgage lender about how to maximize your spending power in relation to your budget <i>and <\/i>your lifestyle.<\/p>\n<p><em>Header Image Source: (Trayan \/ Unsplash)<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Answering the question \u201cwhat house can I afford?\u201d is complicated; there\u2019s more to homeownership than being able to pay your monthly mortgage.<\/p>\n","protected":false},"author":152,"featured_media":28043,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"cybocfi_hide_featured_image":"","footnotes":""},"categories":[192,620,623],"tags":[],"class_list":["post-28041","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-for-buyers","category-buy-house","category-afford-home"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.0 (Yoast SEO v27.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>What House Can I Afford? 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