(Money Talks News) - With the housing bust still fresh in so many people's memories. many people are cautious when it comes to owning a home.
Still lots of people are jumping back into the home-buying game.
But seeking and finding are two different things.
But there are lots of questions people want answers to.
A typical question might be "is a house that's $110,000 too much for a person making $34,000 a year if you have $10,000 saved for closing costs and down payment?"
Thinking about how much you can afford is not that difficult to do. You start by using any number of free online calculators such as one on Zillow.com.
To answer the above example put in the income of $34 thousand, and the down payment of $10 thousand. The result, if the buyer has no other debts, is they can afford a $158,000 house.
Now that sounds good. But remember, it all depends on the buyer having perfect credit and no other debts. It's also the absolute maximum they should pay.
The more house you buy, the more you have to furnish, clean, maintain, heat and air condition.
Don't buy what you can afford, buy what you can comfortably afford. And never base your budget solely on what some calculator or real estate agent tells you to spend.
Priced out of the market? Then consider other options. For example, you can lease a house with an option to buy it. You could save up a bigger down payment. You could buy a fix-up. You could go in with friends. Bottom line is, when it comes to real estate, you can substitute imagination for money.
So if you want to know how much home you can afford, start with a calculator, but don't end there.
If you want to learn more about the right way to buy a house, go to moneytalksnews.com and do a search for "real estate."