Buying Your Home: How Much Can You Afford?

If you are investing in custom homes in Arizona, it is wise to first consider affordability before anything else.


If you are investing in custom homes in Arizona, it is wise to first consider affordability before anything else. You have to be an intelligent home buyer and start thinking ahead if you don't want debts to pile up on your desk just because you overestimated the home that you thought you can afford.

If you want to determine the type of home you can afford to buy, you have to start working backwards and consider how much you earn in a month. That's where you can start drawing the line of your budget.

Before you apply for a mortgage, you also have to rethink if you have remaining debts. If your are going to purchase a new home, you need to reduce your debt and pay off as much as you can – that includes credit cards, car debts, etc.

The main concept for figuring the type of home you can afford is pretty easy.

When paying for your home, you combine the down payment and the bank loan – that's where you know how much home you can afford. And for the rest, you can pay the closing costs in cash. Remember that the amount of money you have to put down varies on the type of loan you get and what the bank requires.

To give you a much more simpler idea, here's a quick rule of thumb – most people can afford a home that costs up to three times their annual household income. If you have little to no debt, then you can probably buy a home worth close to four times your annual income. (michaelbluejay.com)

Now, after knowing how much you can afford, it is now time to decide on what kind of home you can  purchase – if you can afford the new luxury homes like the ones in AZ or rental houses up north.

Today, there are many new home builders in Arizona that can help you choose the home that perfectly fits your budget and can sustain to your family's future.

We present you Dorn Homes, the new custom home-builder of Arizona that provides unique, comfortable, energy-efficient and convenient homes. Dorn Homes do not let their clients to be buried in debt and we'll guide you in every step of the process from what kind of home you can afford to the  new custom-built home you prefer.