How much House
Can I Afford?
On average, lenders recommend that home buyers look for properties that cost no more than three to five times their annual household income. Depending on your lender, a 20% deposit may be a requirement. Think about securing a preapproval letter from your mortgage lender before setting off on tours. This letter can be a distinguishing factor between your offer and a competitor’s. Sellers will lean toward a less risky, quicker purchase process, and prefer buyers with official loan approval.