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Linda Willer
Realtor®, CRS, ABR, SRES
RE/MAX Hall of Fame Member
Prompt, Polite & Never Pushy!
RE/MAX Action Real Estate
1770 Timberwood Blvd.
Suite 101
Charlottesville, VA  22911
Tel: 434.985.4094
Cell: 434-760.1421
Email: LindaWiller@remax.net

Providing high quality real estate services in the City of Charlottesville and the surrounding counties of Albemarle, Fluvanna, Greene, Louisa, Nelson, Madison & Orange.

How Do I Know How Much I Can Afford?

As a "rule of thumb" you can afford to buy a home equal in price to twice your gross annual income.

More precisely, the price you can afford to pay for a home will depend on six factors:

1. Your income
2. The amount of cash you have available for the down payment, closing costs and cash reserves required by the lender.
3. Your outstanding debts
4. Your credit history
5. The type of mortgage you select
6. Current interest rates

Lenders will analyze your income in relation to the cost of your new home and current outstanding debts. This will determine the size loan you can borrow.

Your projected monthly housing expense includes the principal and interest payment on the loan, property taxes, and hazard insurance. The sum of these costs is referred to as "PITI" or "principal, interest, taxes, and insurance."

Monthly homeowner association dues, if you're purchasing a condominium or townhouse, and private mortgage insurance are added to the PITI. Your housing income-to-expense ratio should fall in the 28 to 33% range. 33% of your gross monthly income is allowed for PITI and all long term debt. Some lenders will go higher under certain circumstances. Your total income-to-debt ratio should not exceed 34-38% of your gross income.

Start shopping online! Email LindaWiller@remax.net for property listings in your price range

ABR - Accredited Buyer RepresentativeCRS - Certified Residential SpecialistEqual Housing OpportunityMLS membershipREALTOR® certificationSRES - Seniors Real Estate SpecialistRE/MAX Hall of Fame Recipient