Home Buying in San Francisco>Question Details

avm, Other/Just Looking in San Francisco, CA

how expensive of a house can I afford?

Asked by avm, San Francisco, CA Sat Apr 5, 2014

Help the community by answering this question:


This is one of the additional benefits of getting pre-qualified for a loan. Your lender won't loan you any more money than they feel you can afford.

Begin by analyzing your monthly budget accounting for all income and expenditures. Believe it or not, many people just get their check and spend it with little regard for where the money is going. Help yourself by reviewing and updating your budget....

Good luck,

1 vote Thank Flag Link Sun Apr 6, 2014

As a general rule of thumb, your Housing Expense Ratio, which is principal, interest, taxes and insurance shouldn’t be more than 25% to 28% of your pre-tax monthly income. Fannie Mae and Freddie Mac's automated underwriting systems will approve higher Housing Expense Ratios.

Your Debt-to-Income Ratio should be no more than 36% of your pre-tax monthly income. This is the ratio between how much you owe and how much you earn. By the way, most lenders will accept a 43% to 45% Debt-to-Income Ratio. And there are a few that will accept even higher ratios.

“Qualifying for” and ”can afford” are two different things. Shopping for a home within your budget will save you a lot of heartache now and in the future.

If you’d like help determining how much mortgage you can really afford, I suggest you speak with a mortgage professional.

Best regards,

Elva Wormley
Mortgage Consultant
C2 Financial Corporation
2845 Moorpark Avenue, Suite 209
San Jose, CA 95128
NMLS #331981
1 vote Thank Flag Link Sat Apr 5, 2014
There is a lot that goes into determining how much of a home you can afford. Debt to income ratio and credit score is the most important details to a lender when approving a home buyer. Of course the type of property HOA vs Single-Family home will also effect the amount as well. When adding HOA's into your monthly payment it increase your debt to income ratio can lower the amount.

The best thing to do is sit down with a mortgage broker/ bank and discuss your specific situation. Have them run credit, look at income and debt and determine with you what a comfortable payment would be. This will give you a clear understanding of how much home you can afford. Sometimes you can be approved for higher than what a comfortable monthly payment would be for you.

If you need recommendations for lenders I would be happy to provide them to you. You can call/txt me at 415.336.8191 or email me at langford@climbsf.com

1 vote Thank Flag Link Sat Apr 5, 2014
To get the proper answer you will have to speak with a mortgage professional; Alex Margulis of Perl Mortgage can help (amargulis@perlmortgage.com) but if you're looking for a rough estimate try the attached link from FICO.

Email me for any other questions:
1 vote Thank Flag Link Sat Apr 5, 2014
You need the services of a reliable mortgage advisor.

In Yuba City I use the services of Mickey Sullivan at Evergreen Home Loans who can be reached at:

Mickey Sullivan
Trusted Loan Officer
tel (530) 821-2211
mobile (530) 713-9852
fax (530) 822-0601
1103 Butte House Road, Suite D-Yuba City, CA 95991
0 votes Thank Flag Link Thu Aug 28, 2014

I cover the basics of the pre-approval process (and determining how much you can afford) in a free, monthly webinar. It's 15-mins long and the next one is on May 5. The link to register is below and we'd love to have you join us.

Thank you!

Rob Spinosa
0 votes Thank Flag Link Sat Apr 19, 2014
If you have cash it would be whatever you have to spend. If you need to get a mortgage a lender would be in a position to determine how much of a house you could afford, based on the information you provide about things such as your assets, expenses, job and credit.
0 votes Thank Flag Link Thu Apr 17, 2014
We just got approved for a 100% financing loan with No Verification for Income, Assets or Credit, The payment is equal to or less then a 4.5% loan...Minimum loan amount is $100K...The loan can be used for Commercial or Residential Owner Occupied or Non Owner Occupied... I could qualify you for any loan that you could afford.... But My suggestion to you, Don't buy more house then you can afford...Nothing worse then being house broke... You can also go to Google and search for Mortgage Qualification Calculator...
0 votes Thank Flag Link Thu Apr 17, 2014
Only a reputable mortgage lender can determine for you. Good luck!
0 votes Thank Flag Link Thu Apr 17, 2014
Interesting question in asmuch as we have nothing to base your question on i.e. credit, length of employment, income, downpayment, price point, etc. A little more info would be great.
0 votes Thank Flag Link Thu Apr 17, 2014
There are a lot of different loan options that can change what you can afford. For example down payment.

I always tell my buyers...Step 1-get pre-qualified. It will cost you nothing and you'll get a good idea of what you can afford. When the loan officer pulls a credit report (required for a pre-approval) you can identify and work on any issues that need to be fixed before actually purchasing.

An experienced real estate agent will work in tandem with your loan officer to ensure your offer is as competitive as possible yet doesn't leave you scrambling for extra cash to close the deal.
0 votes Thank Flag Link Thu Apr 10, 2014
Your first step to home ownership is to contact a reliable mortgage advisor. I can recommend Mickey Sullivan of Evergreen Home Loans:

Mickey Sullivan
Trusted Loan Officer
tel (530) 821-2211
mobile (530) 713-9852
fax (530) 822-0601
1103 Butte House Road, Suite D-Yuba City, CA 95991

Evergreen Home Loans
0 votes Thank Flag Link Wed Apr 9, 2014
Unfortunately, there is not enough detail about your situation to properly address your question. If you would like an accurate estimate then I recommend that you speak with a lender directly. This will allow you to efficiently have your situation looked at my a lending professional. Then the lender will analyze your finances in order to be able to give you an estimate of how much you can afford. The best thing for you to do is to speak with a knowledgeable lender like myself to see if you can get started on financing a new home. If you need additional assistance, feel free to reach out. Good luck!

Brian Nguyen
Sr. Mortgage Banker
NMLS # 659743
Phone: 949.667.2887
0 votes Thank Flag Link Tue Apr 8, 2014
Find a seasoned, reputable lender. In case you need to get introduced to a mortgage professional who fits that category, feel free to call me at 415-200-7202.
0 votes Thank Flag Link Mon Apr 7, 2014

A first important step in the home buying process is to go through the pre-approval process. This will really help you understand what you are qualified to buy, but also what you are comfortable buying. Lending will be slightly different when looking at condos vs single family as well, so talking with a lender is very important.

If you need a referral to a mortgage broker, I would be happy to send you a couple of referrals.

Hope that helps!

Lisa Cartolano
Alain Pinel Realtors
CalBRE 01715440
0 votes Thank Flag Link Mon Apr 7, 2014
I would be more than happy to get you approved for a loan. Just send me an email if you have any further questions.

Alex Greer
Loan Officer
NMLS #1056079

0 votes Thank Flag Link Sun Apr 6, 2014
The poster didn't ask if you could get them approved for a loan. They asked how much they can afford. You should answer the first question before you go offering to answer further questions.
Flag Thu Apr 17, 2014
Hi Avm,

The answer to your question can only be determined by meeting with a financing professional to review your credit score and financial capacity.

There are three levels/types of "Pre-Approval". There are key differences between a "Pre-Qualification", "Pre-Approval" and what I call a "True Pre-Approval". In order to be BEST PREPARED I would recommend a "True Pre-Approval". Please see: http://www.Steven-Anthony.com/GettingStarted for a full run-down on your options.

Here's another important point regarding where to obtain your "True Pre-Approval":
"Retail Banks vs. Mortgage Broker/Bankers":
http://=www.trulia.com%2Fvoices%2FFinancing%2FCan_anyone_tell_me_wh… target="_blank" rel="nofollow">http://www.trulia.com/voices/Financing/Can_anyone_tell_me_wh…

0 votes Thank Flag Link Sun Apr 6, 2014
You should talk with a reputable lender(s) who regularly do business in San Francisco. A lot of buyers don't know this, but there are many unscrupulous lender reps who will give out "pre-approval" letters and then hope the deal goes through. If you have any issues, you want to know BEFORE you get into contract.

We deal with several such lenders and would be happy to give you a recommendation. Call or email me at your convenience and I will be happy to share.

Best Regards,

Lance R. King – Broker/CEO
King Realty Group

BRE # 01384425
415.722.5549 - Cell
0 votes Thank Flag Link Sun Apr 6, 2014
Century 21 Funding will find several loans for your review. You will save $500.00 in loan fees from the lender you chose thru C21. All you need do is call me at (415) 308-5902 and there is no cost or obligation.
Bob Evans
0 votes Thank Flag Link Sun Apr 6, 2014
If you are curious and would like to crunch some numbers then checkout the mortgage calculator on my website. (Link below) Also, Pamela from http://www.brunchandbudget.com is a great resource and will be featured on an online radio show called Bonfire Radio tomorrow at 11:30am: http://www.bondfireradio.com.
0 votes Thank Flag Link Sat Apr 5, 2014
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