• How much home can I afford?
• Is it better to buy or rent?

How much home can I afford?

Many financial advisors have a general rule 28/36 Rule

Maximum household expense shouldn’t exceed 28% of your gross monthly income. Total debt shouldn’t exceed more than 36% of your gross monthly income.

For example:
If you make $60,000 a year
$5,000 per month x 28% = $1,400
Debt payments should not exceed 36% or $1,800 a month

Calculating your monthly housing expense includes mortgage principal, interest, property taxes, home owner’s insurance and condo or home owner’s association dues.

Note that home ownership also includes utilities, home repairs and maintenance expenses that should also be considered.

Generally speaking your Debt To Income should be 36% or lower to qualify for a mortgage. Certain loans allow for higher DTIs, such as FHA loans (43%) and VA or USDA loans (41%).

Cash to Purchase Many mortgages require a down payment of at least 3% of purchase price. A higher down payment can lower your monthly payment and increase your affordability.

Your closing cost are typically about 3% - 5% of purchase price.

A lender will qualify you for a mortgage, and can provide a loan estimate.  Contact us directly for lenders we recommend.

Is it Better to Rent or Buy

We recommend using this calculator from the New York Times Calculator.

How do I find school information?

Quality of education is an important factors when moving to a new area.  The following websites provide ratings of various schools and districts.

GreatSchools.org

SchoolDigger.com

Websites of various local schools

Chesterfield Public Schools

City of Richmond Public Schools

Patrick Henry Charter School

Henrico Public Schools

Collegiate School

Hanover Public Schools

Goochland Public Schools