Home

How much of a home you can realistically afford is sometimes a different matter
altogether.

Your qualifying ratios are determined by your income versus your consumer debt and
proposed housing expense, PITI (Principal & Interest, Taxes and Insurance) and
association/assesment fees if buying a condo or Town home.

There are ratios that lenders use to determine your risk and if you will qualify for a
loan and at what rate.
Compensating factors weigh into analyzing debt ratios, so you could potentially
qualify for more than you were anticipating.

Here's a key question... can you comfortably afford that payment?

I know buying a home is an emotional process-don't let your emotions get the best of
you when it comes to financing it.

Try not to push yourself into more of a housing payment that you are ever
comfortable with, never justify a purchase price that might extend your financial
capability.
Your financial longevity success will come from building natural equity in your home
and making principal reduction payments.