Buying power is the maximum amount you can spend on a home based on your financial profile. It combines your available for a down payment with the maximum loan a lender will grant you. 🏗️ The 3 Pillars of Buying Power 1. The 28/36 Rule Lenders typically follow these debt-to-income (DTI) ratios:
To help you get a more accurate number, I can run specific calculations if you'd like to share: Your ? Your total monthly debt payments ? How much you have saved for a down payment ? Your approximate credit score range? calculate home buying power
A bank's pre-approval letter is the only way to "lock in" your official buying power before shopping. Buying power is the maximum amount you can
Keep 1%–3% of the home's value in savings for annual repairs. The 28/36 Rule Lenders typically follow these debt-to-income
Multiply gross income by 0.36 (36%) and subtract existing monthly debts.