There are few things more exciting than finding your ideal home, but with the rising cost of housing, a person’s dream home can often come with a very high purchase price. If you’re wondering how much home you can truly afford and how your cost of living will fare for your mortgage approval, here are some of the details on what you can expect when it comes to finding a home at an affordable price.
What Is Your Debt-to-Income Ratio?
Before deciding if a home is right for you, it’s important to calculate what your debt-to-income (DTI) ratio is to determine how much house you can afford. The debt amount will include any credit cards, existing mortgages and other loan payments that you pay down each month. To determine your maximum monthly payment, multiply your gross income by 0.36 and divide it by 12. This will give you the expenditure of debt, including your housing payment, that you should not exceed each month.
Determining Your Down Payment
There’s a lot of talk around the ideal amount you should put forward for a down payment, but this percentage can directly impact the amount of the house you can afford. If you are able to put down 20% of the purchase price of your home, this means your monthly mortgage payments will be minimized and this will decrease your DTI ratio. While a home may be out of your reach if you can only put 10 or 15% down, 20% down will ensure a higher amount of disposable income on a monthly basis, making your application more feasible.
Determine Your Lifestyle
While a lender may not reject your application outright if your debt-to-income ratio is higher than suggested, it’s important to know what kind of spending choices make sense for you so that you can make your monthly payments. If you have limited expenses above your mortgage and enjoy a Spartan lifestyle, it’s entirely possible that you’ll be able to manage a higher monthly amount. However, if you don’t have stable employment and are struggling each month, it may be a good idea to consider a less expensive property.
The monthly mortgage payment for your dream home may look like it’s manageable on the surface, but if your DTI ratio exceeds what is suggested, there may be issues with acceptance of your application. If you’re currently in the market for a new home, give me a call for more information – J.P. Cook – 602-320-4253.
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18816 N 94th Avenue
Peoria, AZ 85382
$465,000
2
Beds
2
Baths
1,649
SqFt
Status
Active
MLS #
6695103
Property Type
Single Family Residence
Price Type
--
Beautiful Patio Home now available in Fairway Ridge! This Pebblebeach floorplan offers many recent updates/upgrades, including newer windows in 2019. Granite counters in kitchen and baths. Upgraded wood flooring, newer carpeting in bedrooms. Upgraded cabinets. Private pavered backyard patio is a perfect extension for outdoor living. The community pool/spa are steps away. Westbrook Village is truly a resort experience that is so convienently located to shopping/dinning options. 2 community centers, pickle ball, fitness and pools. Enjoy a resort lock and leave lifestyle!
1081 W 1st Street
Tempe, AZ 85281
$465,000
3
Beds
2.5
Baths
1,771
SqFt
Status
Active
MLS #
6598480
Property Type
Townhouse
Price Type
--
Welcome Home! Step inside this luxurious, fully remodeled 2 story townhome that sits nestled in the amazing city of Tempe! Upon entering this home, you are greeted with gorgeous tile flooring, tons of natural light and an open floor concept! The kitchen boasts a breakfast bar, pantry, stark white cabinetry, tiled backsplash and black appliances! The spacious bedrooms offer plenty of room for sleep, study, and storage. This home offers your very own private balcony! Don't forget about the 3 car garage! Look no further! This home will not disappoint!
1818 W Vista Avenue
Phoenix, AZ 85021
$465,000
3
Beds
2
Baths
2,350
SqFt
Status
Active
MLS #
6631863
Property Type
Single Family Residence
Price Type
--
Remodeled and spacious, step into a home that seamlessly blends modern aesthetics with timeless charm. The interior is bright and welcoming, offering an abundance of natural light throughout. Perfect for those seeking a comfortable living space, the home boasts 3 well-appointed bedrooms and 2 remodeled bathrooms in the popular black and white color palette with a walk-in shower in the primary bathroom. The Arizona Room, with an attached laundry area, adds a touch of versatility to the property. Additionally, there are 2 extra flex rooms equipped with split AC/heating, totaling an additional 338 sq.ft.,that present endless possibilities - a home office, workshop, or even an extra bedroom! The heart of this home, the kitchen, is a chef's dream. Ample storage space, beautiful cabinetry, a wall mounted oven and granite countertops make this space as practical as it is aesthetically pleasing. Enjoy a grandfathered in $57 monthly solar lease, which could allow you to have as little as $200 electric bills in the hottest months of the year. This gem sits on an irrigated lot, ensuring a lush easy-to-maintain yard and cost-efficient maintenance with no HOA! Benefit from the peaceful setting as 19th Avenue is not accessible from Vista Ave and the street closure ensures minimal traffic.
3856 S Verbena Avenue
Gilbert, AZ 85297
$465,000
3
Beds
2.5
Baths
2,140
SqFt
Status
Active
MLS #
6645171
Property Type
Single Family Residence
Price Type
--
Your Power Ranch Home Is Here! This former model 3 bedroom, 2.5 bathroom home is waiting for you. Your home greets guests to a fire place living room with a six point in-wall, prewired speakers. Travertine tile floor throughout the first floor, the open kitchen looks out to a double sliding door dining room. Bar top counters. Large open pantry for the chef in your family. Plantation shutters throughout. Spacious second floor family room loft. From your primary bedroom, a near spa at home with separate double sinks, separate shower next to a huge garden tub. Split floor plan. Upstairs laundry. Leased solar are grandfathered into old SRP plan. Quaint and easy to maintain backyard. Home faces large greenbelt with sidewalks, community pool, Power Ranch amenities and so much more.
4202 W Mountain View Road
Phoenix, AZ 85051
$465,000
3
Beds
2
Baths
2,456
SqFt
Status
Active
MLS #
6681093
Property Type
Single Family Residence
Price Type
--
A RARITY!! This beautiful well-built block construction home sits on an oversized pie-shaped 14,500+ sf lot, nestled on an inner corner of a non-through road inside the quiet and friendly Newcastle Village community. Boasting a flexible, well laid-out floorplan provides functional, open, and light-filled great room style living, with not one but TWO flexible living areas that can be used as a den, office, craft space, kids play area, secondary eating nook, or family room. The carefully updated and renovated interior (2021) includes not just tasteful cosmetic upgrades t/o, but infrastructural updates galore, as well. Features include an all new modern kitchen with upscale Viking electric range (gas hook up is also available) and Bertazzoni fridge, upgraded lighting and plumbing fixtures t/o, gorgeous dining room fireplace with statement wall, newer LPV flooring t/o, high quality Pella windows and doors in the light-filled, spacious great room area, chic and charming hexagonal saltillo tile, a charming tiled, built-in plant bench in the great room, all newer interior paint, upgraded radiant barrier installed throughout the attic to reduce heat gain and reduce cooling costs, newer ABS sewer line, a meticulously serviced Trane HVAC unit, tons of functional storage, and a smattering of added updates and upgrades throughout. Exterior features include an RV gate, with pavered RV pad, 220V RV hook up, large Tuff Shed storage that conveys with sale, Rain Dial watering system, closed alleys with access only for residents (code supplied at closing), and mature and rare desert landscaping, including two large organ pipe cacti, and one saguaro, both considered incredibly valuable for their size and age. This is a VERY special property on a very unique and special lot. The owners have taken great care of it, and it shows even better in person! The feeling of the property cannot be fully conveyed or described in words. If you want to live in a safe and quiet area close to shopping, services, great schools, restaurants, and an easy 20-25 min commute to the central city, don't miss this one - it'll go fast!
2401 E Rio Salado Parkway
Tempe, AZ 85288
$465,000
3
Beds
2.5
Baths
1,380
SqFt
Status
Active
MLS #
6652290
Property Type
Townhouse
Price Type
--
Resort style gated community! The Location can't be Beat! Walking distance to the Cubs Sloan Park Stadium. Right off of 101 & 202 FWY, ASU, Bus stops, Airport, Tempe Market Place! Popular 3 Bed & Den 2.5 Bath floorplan with a large open living area adjoining a full kitchen with island. Downstairs is the living area, spacious downstairs den/bonus room/large home office (at 126 SF!), Kitchen & breakfast area overlooking a private covered patio & backyard. Upstairs is master bedroom & master bath, laundry & 2 additional bedrooms with another bath. Two car garage and lots of additional guest parking in this beautifully maintained complex! 2 Pools and lots of area to walk your dog! Move in ready! Hurry! 3 bedroom unit sure to go quickly
18300 N Shimmer Lane
Surprise, AZ 85374
$465,000
2
Beds
2
Baths
1,627
SqFt
Status
Active
MLS #
6654095
Property Type
Single Family Residence
Price Type
--
Desired Madera model with great room floor plan, and heated salt water pool! Lush landscaping backyard provide plenty of privacy when frolicking in the salt water pool. Home has been professionally modified to a large open great room, ideal for a larger table and game area. Inside features plantation shutters throughout, GE profile kitchen appliances, additional kitchen cabinets with built-in desk, a bay window in the primary bedroom, two sinks in primary bath, and inside laundry with utility sink. Garage has built-in and workbench. The pebble-tec pool pool with its attractive water feature is heated and self-cleaning. Your tropical backyard has an extended covered patio with pull-down shades and strategically planted foliage that provide privacy.
19459 N Toya Street
Maricopa, AZ 85138
$465,000
6
Beds
4
Baths
3,901
SqFt
Status
Active
MLS #
6661449
Property Type
Single Family Residence
Price Type
--
WOW...10K PRICE REDUCTION!! Experience luxury living in Maricopa AZ! This stunning 2-story POOL home boasts 6 bedrooms, 4 bathrooms, and a spacious 3901 sq ft. With beautiful laminate wood floors, a unique radiant barrier in the attic, wall mural at the built-in bar, and neutral paint tones, this home is sure to impress. The upgraded bathrooms and black appliances add a touch of elegance to the space. The huge owners suite is the perfect oasis to unwind in after a long day. Step outside to the backyard covered patio with a second Ramada, perfect for outdoor entertaining. And don't forget about the ample storage space and open floor plan. Don't miss out on this amazing opportunity. Contact us now and make Maricopa your new home!''
3789 E Yorkshire Circle
San Tan Valley, AZ 85140
$465,000
4
Beds
2
Baths
2,134
SqFt
Status
Active
MLS #
6658819
Property Type
Single Family Residence
Price Type
--
PRICE ADJUSTMENT -This delightful property is nestled on a premium corner lot! Immaculate interior boasts vaulted ceilings, tons of tile flooring, fresh/new carpet in all the right places, graceful archways, & a spacious living/dining room w/French doors to the custom AZ room. The kitchen was update w/newer appliances, recessed lighting, granite counters, & ample white cabinetry w/crown molding. Super island w/a breakfast bar & a breakfast nook is ideal for casual dining. The generously sized AZ Room is bathed in sunlight with ceiling fans, excellent for year-round entertainment. Retreat to the main suite, w/ AZ room access, a full ensuite w/dual sinks, & a walk-in closet. Delightful backyard has artificial turf landscape & looks like a beautiful park!
3841 Turkey Trail
Lakeside, AZ 85929
$465,000
4
Beds
2.5
Baths
2,072
SqFt
Status
Active
MLS #
6659919
Property Type
Manufactured Home
Price Type
--
Welcome to this stunning 4-bedroom, 2.5 bathroom home that seamlessly blends comfort, style, and functionality. With an open concept lies a kitchen, which boasts recent upgrades, providing both modern aesthetics and practicality. Stainless steel appliances, sleek countertops, and ample cabinet space make this kitchen a haven for both aspiring chefs and busy families. The home features a thoughtful layout, with a spacious living room perfect for hosting gatherings and a separate family room that provides a more intimate space for relaxation. The family room opens up possibilities for cozy movie nights or quiet evenings with loved ones. Newly installed heating and cooling systems ensure year-round comfort, allowing you to enjoy every season without compromise. The large windows throughout the home allow natural light to flood in, creating a bright and airy ambiance. Outside, the expansive fenced backyard offers a private retreat. With an RV gate and hook-ups, it's a dream for adventure enthusiasts looking to hit the open road. For those with a penchant for hobbies or extra storage space, the property comes complete with a spacious 3-car garage and 2 additional outbuildings. Whether you're a car enthusiast, DIY enthusiast, or simply need extra space, these structures provide endless possibilities.
43317 W Wallner Drive
Maricopa, AZ 85138
$465,000
5
Beds
3
Baths
3,401
SqFt
Status
Active
MLS #
6663086
Property Type
Single Family Residence
Price Type
--
Your dream home is finally here! You'll LOVE to own this one-of-a-kind two-story residence in Rancho El Dorado! Starting with a 3-car garage, low-care front yard, and stone accents. Be delighted by an inviting interior showcasing a combined living/dining room and a formal family room paired with tile flooring in all the right places. The impeccable kitchen is equipped with recessed lighting, stainless steel appliances, quartz counters, mosaic backsplash, white cabinetry, a peninsula with a breakfast bar, and a breakfast nook. Head upstairs, to discover the HUGE loft offering endless possibilities! The bright main bedroom boasts plush carpet and an ensuite with dual sinks. The expansive backyard provides a covered patio and pavers. A rare find like this will surely impress you!
2613 N 110th Drive
Avondale, AZ 85392
$465,000
3
Beds
2
Baths
1,957
SqFt
Status
Active
MLS #
6662708
Property Type
Single Family Residence
Price Type
--
Quiet cul-de-sac single story home with Lake Views from your backyard. Located near the 10 and 101 freeways, shopping, dining and entertainment. This home boast an open floor plan, formal living and dining, large den that can be used as a 4th bedroom. Granite counter tops throughout the home. Open Kitchen marble backsplash with stainless steel appliances. Ceiling fans, tile and only carpet in the bedrooms. Enjoy your ramada and patio in the backyard for entertaining. Separate entrance to the patio from the master suite. Newer AC, water heater.
