How Much House Can I Afford in Kansas City?
The answer is not just your income. Lenders look at your monthly debts, your credit and the full monthly payment on the house.
The debt-to-income ratio
Lenders add up your monthly debts, including the new house payment, and divide by your gross monthly income. Many programs approve ratios in the mid-40s as a percentage. Some go higher with strong credit or savings. Car loans, student loans, credit card minimums and child support all count.
What is in the monthly payment
- Principal and interest on the loan
- Property taxes, which vary by county and school district
- Homeowners insurance
- Mortgage insurance on some loans
- HOA dues if there are any
Taxes and insurance surprise buyers the most. Ask for the real tax figure on each house you look at.
Ways to buy more house
- Pay off a small debt that is eating your ratio
- Raise your credit score before you apply
- Add a co-borrower with income
- Compare FHA and conventional for your situation
- Look at down payment assistance if you qualify
Common questions
Is the lender’s approval number what I should spend?
Not always. Approval is the ceiling. Your comfort level matters more. I will show you payments at different prices.
Do I need 20% down?
No. Many buyers put down less. The loan type and mortgage insurance change the payment.
Told no somewhere else? Call me.
I can’t promise a yes, but I’ll look at every option. Call or text, or meet in person.