Signing Up for a Mortgage – Can You Afford Your New House?

How do you decide on whether you are financially prepared to handle a mortgage or not? Don’t get your heart stuck on a house that is out of your buying range because even though you might get the loan to buy it, you won’t be able to afford the monthly payments.

However, there’s still a kink in this plan, if you do decide to take this path. The lender grants you a loan based on your current financial situation and employment. So, all in all, you won’t be able to afford a mortgage if your bank account doesn’t agree with the amount.

Don’t worry! We are here to give you a few tips on how to figure out your mortgage range. Consider the following points before approaching a lender and you will definitely breeze through your monthly payments:

1. Prepare a Comprehensive Budget

When it comes to buying a house, the rule of thumb is that you can usually afford a home for sale in Sandy Springs, GA that is priced 2 to 3 times above your gross income. Say your income is $150,000. You can buy a house that falls between $250,000 and $350,000.

However, let’s say that out of the $150,000 you earn, $1,500 goes into monthly payments. So, now you are a few thousand dollars short, which means that your monthly payments will be affected. This is why you need to prepare a budget that lists all your expenses. Subtract from your income and you will find the accurate monthly payment you can afford.

2. Don’t Forget the Down Payment

One of our previous blogs has covered why putting a 20% down payment is not necessary. However, if you do pay 20% down payment, you will not have to buy private mortgage insurance. Look into the interest rates each lender is offering and then make a decision. For your down payment, you can dip into your savings account, if you think the home for sale in Sandy Springs, GA is worth the asking price.

3. Find Out If You Are In Debt

All your monthly payments that include only the necessities must not go above 43% of your annual income. Here’s how to calculate this 43%:

  • Say your annual income is $150,000
  • Multiply $150,000 by 43% and you get $64,500
  • Divide $64,500 by 12 months and you get $5,375

Your monthly bills should not go above %5375.

4. Rent vs. Buy – Your Mortgage Guide

Are you renting a house right now? Calculate all your monthly expenses and then compare it with the monthly expenses of owning a house. Don’t forget to factor in the yearly increase in rent. If you are struggling with the rent and other payments, then it is better to buy a house in the same amount. At least, this way you will be saving a lot.

If you are planning to buy a house, then do use these tips to calculate your monthly payments. The question you should ask yourself at the end is: will you be able to afford it? Looking for a home for sale in Sandy Springs, GA that will fall under your budget? Head on over to America’s Network Realty Group Inc. and find your dream house by entering a few details.

Homes for sale in Atlanta

Price
Beds
Baths
For Sale / All Types
New Listing - 2 weeks online
$294,990
Single Family Home For Sale
Active
4
BED
4
TOTAL BATHS
2,635
SQFT
7107 Demeter Drive
Atlanta, GA 30349
Camden Manor Subdivision
$288,421
Single Family Home For Sale
Pending
3
BED
2
TOTAL BATHS
1,802
SQFT
673 Python Drive
Atlanta, GA 30349
Camden Manor Subdivision
$324,990
Single Family Home For Sale
Pending
5
BED
4
TOTAL BATHS
3,363
SQFT
7064 Demeter Drive
Atlanta, GA 30349
Camden Manor Subdivision
New Listing - 2 weeks online
$287,990
Single Family Home For Sale
Active
4
BED
4
TOTAL BATHS
2,635
SQFT
7067 Demeter Drive
Atlanta, GA 30349
Camden Manor Subdivision
$299,026
Single Family Home For Sale
Pending
5
BED
3
TOTAL BATHS
3,040
SQFT
7057 Demeter Drive
Atlanta, GA 30349
Camden Manor Subdivision
Price Change - 2 weeks ago
$284,990
Single Family Home For Sale
Pending
3
BED
2
TOTAL BATHS
2,200
SQFT
7044 Demeter Drive
Atlanta, GA 30349
Camden Manor Subdivision
$329,990
Single Family Home For Sale
Pending
6
BED
4
TOTAL BATHS
3,363
SQFT
663 Python Drive
Atlanta, GA 30349
Camden Manor Subdivision
$288,990
Single Family Home For Sale
Active
4
BED
4
TOTAL BATHS
2,635
SQFT
7027 Demeter Drive
Atlanta, GA 30349
Camden Manor Subdivision
$312,478
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
2,544
SQFT
7014 Demeter Drive
Atlanta, GA 30349
Camden Manor Subdivision
$299,990
Single Family Home For Sale
Pending
5
BED
4
TOTAL BATHS
3,040
SQFT
7007 Demeter Drive
Atlanta, GA 30349
Camden Manor Subdivision
$289,990
Single Family Home For Sale
Active
4
BED
4
TOTAL BATHS
2,635
SQFT
6997 Demeter Drive
Atlanta, GA 30349
Camden Manor Subdivision
$4,000,000
Single Family Home For Sale
Active
7
BED
9
TOTAL BATHS
15,159
SQFT
4690 Thompson Road
Atlanta, GA 30349
 
$8,900,000
Single Family Home For Sale
Active
9
BED
14
TOTAL BATHS
26,000
SQFT
4965 Butner Road
Atlanta, GA 30349
 
$310,235
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
2,443
SQFT
555 Dutchview Drive
Atlanta, GA 30349
WHISPERING WILLOWS Subdivision
Short Sale
$195,000
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
2,639
SQFT
432 Hammock Loop
Atlanta, GA 30349
 
New Listing - yesterday
$277,303
Single Family Home For Sale
Active
3
BED
3
TOTAL BATHS
2,260
SQFT
3216 Camden Court
Atlanta, GA 30349
Kingsland Subdivision
New Listing - yesterday
$290,182
Single Family Home For Sale
Active
4
BED
4
TOTAL BATHS
2,545
SQFT
3217 Camden Court
Atlanta, GA 30349
Kingsland Subdivision
New Listing - 3 weeks online
$306,071
Single Family Home For Sale
Active
4
BED
4
TOTAL BATHS
2,525
SQFT
3208 Camden Court
Atlanta, GA 30349
Kingsland Subdivision
New Listing - yesterday
$280,112
Single Family Home For Sale
Active
3
BED
3
TOTAL BATHS
2,545
SQFT
7147 Glaspie Way
Atlanta, GA 30349
Kingsland Subdivision
$310,500
Single Family Home For Sale
Active
5
BED
3
TOTAL BATHS
3,033
SQFT
510 Dutchview Drive
Atlanta, GA 30349
WHISPERING WILLOWS Subdivision
New Listing - 3 weeks online
$310,089
Single Family Home For Sale
Active
5
BED
3
TOTAL BATHS
2,680
SQFT
3221 Camden Court
Atlanta, GA 30349
Kingsland Subdivision
$272,803
Single Family Home For Sale
Active
3
BED
3
TOTAL BATHS
2,260
SQFT
3204 Camden Court
Atlanta, GA 30349
Kingsland Subdivision
Open House 12/07 at 1PM
$280,508
Single Family Home For Sale
Active
5
BED
3
TOTAL BATHS
2,487
SQFT
3200 Camden Court
Atlanta, GA 30349
Kingsland Subdivision
$327,527
Single Family Home For Sale
Pending
5
BED
3
TOTAL BATHS
3,077
SQFT
455 Dutchview Drive
Atlanta, GA 30349
WHISPERING WILLOWS Subdivision
$239,900
Single Family Home For Sale
Pending
4
BED
3
TOTAL BATHS
1,972
SQFT
400 Dutchview Drive
Atlanta, GA 30349
WHISPERING WILLOWS Subdivision
$271,053
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
2,260
SQFT
3225 Camden Court
Atlanta, GA 30349
Kingsland Subdivision
$278,990
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
2,522
SQFT
3220 Camden Court
Atlanta, GA 30349
Kingsland Subdivision
New Listing - 4 weeks online
$263,389
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
2,122
SQFT
3235 Camden Court
Atlanta, GA 30349
Kingsland Subdivision
$286,258
Single Family Home For Sale
Pending
5
BED
4
TOTAL BATHS
2,487
SQFT
3247 Camden Court
Atlanta, GA 30349
Kingsland Subdivision
$271,500
Single Family Home For Sale
Pending
4
BED
3
TOTAL BATHS
2,487
SQFT
3239 Camden Court
Atlanta, GA 30349
Kingsland Subdivision
New Listing - 4 weeks online
$267,389
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
2,122
SQFT
3243 Camden Court
Atlanta, GA 30349
Kingsland Subdivision
$267,389
Single Family Home For Sale
Pending
4
BED
3
TOTAL BATHS
2,108
SQFT
3251 Camden Court
Atlanta, GA 30349
Kingsland Subdivision
$268,789
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
2,122
SQFT
7143 Glaspie Way
Atlanta, GA 30349
Kingsland Subdivision
$282,173
Single Family Home For Sale
Active
3
BED
3
TOTAL BATHS
2,260
SQFT
7139 Glaspie Way
Atlanta, GA 30349
Kingsland Subdivision
$245,700
Single Family Home For Sale
Pending
5
BED
4
TOTAL BATHS
2,404
SQFT
3492 Dacite Court
Atlanta, GA 30349
Flat Shoals Manor Subdivision
New Listing - a week online
$194,990
Single Family Home For Sale
Active
3
BED
3
TOTAL BATHS
6526 Beaver Creek Trail
Atlanta, GA 30349
College Heights Subdivision
New Listing - a week online
$205,490
Single Family Home For Sale
Pending
4
BED
3
TOTAL BATHS
6517 Beaver Creek Trail
Atlanta, GA 30349
College Heights Subdivision
New Listing - a week online
$205,990
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
6577 Beaver Creek Trail
Atlanta, GA 30349
College Heights Subdivision
New Listing - 2 hours online
$205,490
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
6509 Beaver Creek Trail
Atlanta, GA 30349
College Heights Subdivision
New Listing - a week online
$204,990
Single Family Home For Sale
Pending
4
BED
3
TOTAL BATHS
6522 Beaver Creek Trail
Atlanta, GA 30349
College Heights Subdivision
New Listing - a week online
$257,990
Single Family Home For Sale
Active
5
BED
3
TOTAL BATHS
6538 Beaver Creek Trail
Atlanta, GA 30349
College Heights Subdivision
New Listing - a week online
$218,990
Single Family Home For Sale
Pending
5
BED
3
TOTAL BATHS
6513 Beaver Creek Trail
Atlanta, GA 30349
College Heights Subdivision
New Listing - a week online
$217,990
Single Family Home For Sale
Active
5
BED
3
TOTAL BATHS
6518 Beaver Creek Trail
Atlanta, GA 30349
College Heights Subdivision
New Listing - a week online
$258,990
Single Family Home For Sale
Pending
5
BED
3
TOTAL BATHS
6566 Beaver Creek Trail
Atlanta, GA 30349
College Heights Subdivision
New Listing - a week online
$218,990
Single Family Home For Sale
Pending
5
BED
3
TOTAL BATHS
6521 Beaver Creek Trail
Atlanta, GA 30349
College Heights Subdivision
New Listing - a week online
$198,740
Single Family Home For Sale
Active
3
BED
2
TOTAL BATHS
6505 Beaver Creek Trail
Atlanta, GA 30349
College Heights Subdivision
$162,490
Single Family Home For Sale
Pending
4
BED
3
TOTAL BATHS
1,800
SQFT
6690 Mancha Street
Atlanta, GA 30349
Heritage Park Subdivision
$169,490
Single Family Home For Sale
Pending
4
BED
3
TOTAL BATHS
2,000
SQFT
6683 Mancha Street
Atlanta, GA 30349
Heritage Park Subdivision
$167,490
Single Family Home For Sale
Pending
4
BED
3
TOTAL BATHS
2,000
SQFT
2205 Creel Road
Atlanta, GA 30349
Heritage Park Subdivision
$174,490
Single Family Home For Sale
Pending
5
BED
3
TOTAL BATHS
2,217
SQFT
6790 Mancha Street
Atlanta, GA 30349
Heritage Park Subdivision
$162,490
Single Family Home For Sale
Pending
4
BED
3
TOTAL BATHS
1,800
SQFT
6742 Mancha Street
Atlanta, GA 30349
Heritage Park Subdivision
$169,490
Single Family Home For Sale
Pending
4
BED
3
TOTAL BATHS
2,000
SQFT
6735 Mancha Street
Atlanta, GA 30349
Heritage Park Subdivision
$176,490
Single Family Home For Sale
Pending
5
BED
3
TOTAL BATHS
2,217
SQFT
2281 Creel Road
Atlanta, GA 30349
Heritage Park Subdivision
$162,490
Single Family Home For Sale
Pending
4
BED
3
TOTAL BATHS
1,800
SQFT
2273 Creel Road
Atlanta, GA 30349
Heritage Park Subdivision
$169,490
Single Family Home For Sale
Pending
4
BED
3
TOTAL BATHS
2,000
SQFT
2285 Creel Road
Atlanta, GA 30349
Heritage Park Subdivision
$167,990
Single Family Home For Sale
Pending
4
BED
3
TOTAL BATHS
2,045
SQFT
505 Hererra Street
Atlanta, GA 30349
Heritage Park Subdivision
$252,500
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
3,006
SQFT
4244 Sublime Trail
Atlanta, GA 30349
Pittman Park Subdivision
New Listing - 3 weeks online
$234,420
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
1,976
SQFT
5066 Rapahoe Trail
Atlanta, GA 30349
Parkway Villages Subdivision
New Listing - 2 weeks online
$230,965
Single Family Home For Sale
Active
3
BED
3
TOTAL BATHS
1,920
SQFT
5064 Rapahoe Trail
Atlanta, GA 30349
Parkway Villages Subdivision
New Listing - 3 weeks online
$232,920
Single Family Home For Sale
Active
4
BED
3
TOTAL BATHS
1,976
SQFT
5062 Rapahoe Trail
Atlanta, GA 30349
Parkway Villages Subdivision