How Much Can You Really Afford To Pay For A House in Roswell?

Very often, people buy houses without first knowing what they can really afford – often a costly, life-impacting oversight. Qualifying for a $250,00 mortgage doesn’t mean that you can actually afford that much house. How much you can really afford to pay for a house in Roswell is determined by a lot more than mere sale price – your recurring monthly payments and other outstanding debt, for example. And the ongoing costs of home ownership have to be factored in when determining what you can really afford. Let’s take a look, then, at some of the important pieces of this puzzle.

Other Debt

As we mentioned, the existing debt you have (besides the mortgage) will play a large part in how much you can afford to pay for a house in Roswell. And this applies especially to credit card debt when budgeting what you can pay for a house. While lenders do take into account all your debts, they look at only your minimum monthly debt payments.

In many cases, you’re likely to reach a point at which you will want to or need to make more than the minimum payments. For example, a $30,000 credit card debt at 18% on which you pay $500 a month will cost you a total of $78,000 over the course of 13 years. You probably wouldn’t make those minimum payments the whole time and wind up paying 2.5+ times more than the original debt.

Other Expenses

But debt doesn’t tell the whole story about what you can afford to pay for a house in Roswell. Most people have plenty of other expense that doesn’t even figure into the mortgage qualification process, but that is still part of your regular monthly expenses nevertheless. Your ability to afford a house depends on more than just those things that show up on your credit report, for example:

  • Groceries
  • Clothing
  • Gas
  • Utilities
  • Cable
  • Internet
  • Car Insurance
  • Eating out
  • Entertainment
  • Travel
  • Daycare

What the bank considers debt is only part of the affordability picture. Buying more house than you can afford may force you to cut back drastically in these other areas.

Variable Costs of Owning

In determining what you can pay for a house in Roswell, you also have to consider the fact that the cost of home ownership isn’t fixed. Buying and owning a house has associated costs that can vary and often greatly increase. Chief among these are the home owner’s insurance, which can vary from year o year, and property taxes, which almost always increase. And there are costs for maintenance and repairs that inevitably get larger as the property ages, especially when it comes the things like roofs.

Need for Emergency Cash

How much you can actually afford to pay for a house in Roswell is also determined, at least in part, by how much in reserve funds you can keep on hand to cover emergencies, especially emergency repairs. Studies show that nearly half of American don’t have enough cash on hand to cover a $400 emergency expense. And keep in mind that a new roof will run you up to $10,000. Short of borrowing this money for a new roof, you would risk being delinquent on mortgage payments if you didn’t enough reserve cash.

Buying a house is a big step and a large financial transaction even for experienced investors. You should, then, before signing the contract, figure out how much you can really afford to pay for a house in Roswell. For there’s a lot more to it than just how much your bank is willing to lend.

Are you ready to buy a house in Roswell? We can help! Send us a message or give us a call today! (404) 964-2267

Tania Gardere MacLeod

Roswell’s Perfect Spot Top Producing Real Estate Agent & Lacrosse Mama IT'S THE PERFECT SPOT Hi, I’m Tania (pronounced Tan - like a SUN-TANya, not TONya). Not to digress, but I get this question all the time. My husband Doug & I have lived here in Roswell since 2002 and we have 1 son and 3 girls. All of them play lacrosse, so when I’m not out showing and selling houses, doing walk throughs, attending closing celebrations, taking continuing education classes, attending seminars, watching HGTV or jogging with my dogs, you’ll find me on the side lines of a lacrosse field cheering for my kids and their teams! I’ve been in Real Estate right here in Roswell since 2007. Currently, I average about 95%+ of my business comes from referral, so it’s critical that I connect with my clients from the beginning and spend some time discussing what their goals are, so we can create a plan that makes sense for them. I’ve been able to sell homes for more money and in less time than the average agent in Atlanta. That means your house is on the market for less time, so you can move on to your next phase of life... and have more money too! Being in the top 10% of all real estate agents in Atlanta, means I’m doing more business so I deal with the majority of bumps that can come up during a transaction so that we are better prepared how to handle anything that comes our way. This is the biggest investment for most of us, and I want this to be a great experience for you too! I’m not a transactional real estate agent, I’m a FULL - SERVICE RELATIONAL REALTOR®. I am here to help you and your family (including your family pets! ) through the entire process, well before it’s time to put your house on the market to sell or time to buy a new house, and well after we’ve close on your new perfect spot to call home. Sometimes we need to come up with a plan to save up for that dream house for a year or two or even work with my lenders to craft a credit repair or improvement plan so you qualify for a better loan option and rate. Often times, my buyers have to sell first, but they don’t want to put their house on the market before they find the perfect spot to call home and buy. So we have a vicious cycle of not enough homes (or the right homes) on the market when you need to buy. Don’t worry, this is where my networking skills really help you out. I keep a secret list of homes not on the market. And many times, you can tell me a specific neighborhood you want to live in, and I can FIND someone who might consider selling to you. I go the extra mile to make sure we find or sell your perfect spot to call home. I’m your life time real estate advisor! Many referred to me as the high energy Roswell Real Estate Expert. It's where I live, work and play!

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