Hi Loretta! Great question.
As my colleagues suggest below, salary --by itself -- doesn't tell the whole story. When an underwriter makes a decision on a loan, there are two major considerations: one is the ratio between the proposed mortgage payment and the monthly gross salary (that ratio should ideally be somewhere in the 28-32% range). The other ratio is the total debt (mortgage payment + car payments + credit cards + student loans, etc.) in relation to salary. This second ratio should be under 45%.
Bottom line: salary is only PARTof the picture. A home budget cannot accurately be determined without knowing the amount of total debt that a person or family has.
If you're interested, I know a WONDERFUL mortgage representative who would be happy to provide a FREE, no-obligation consultation (he would ask the homebuyer basic questions to determine the above information and, from that, be able to provide a target home price range). If you'd like his contact information, just call me at (610) 324-5240 or email me at judy@JudysFineHomes.com.
I hope this helps. Please pass along my "good luck" wishes to the prospective first-time homebuyer -- and also let them know that they can always contact me directly at (610) 324-5240) with any additional questions they may have.
Judy May, Esquire, REALTOR
Your DIAMOND Realtor
O: (610) 489-7700
C: (610) 324-6250 (preferred)
Search the MLS!