How Much Can I Afford for a House in Henderson, Las Vegas, or Boulder City
How Much Can I Afford for a House
If you are interested in purchasing a house in Henderson, Las Vegas, or Boulder City, you will need to ask yourself, “How much can I afford for a house?”. There are a few things to consider when answering this question, how much will your mortgage payment be? How much will utilities cost? How much will repairs cost you per month? HOA payments? Be sure to consider the following items to help you determine how much you can afford for a house in Henderson, Las Vegas, or Boulder City.
How much Mortgage can I afford?
Your lender will help you determine how much you can afford, but usually you want the monthly mortgage payment to be ⅓ to ¼ of your monthly income. Getting a monthly payment in that range will determine on how much you can put down on the home and how much the house costs. Once your lender has your interest rate (based on your credit score and debt to income ratio) and down payment, they will give you a pretty close estimate on how much your monthly payments will be. The other major contributing factor to how much mortgage you can afford is the term of your mortgage as you can do a 10, 15, and 30 year loan with most lenders, and then your lenders may also have some other loan options that may have a different term length.
How much will utilities be?
If you are currently living in a rental home or apartment, you may not be paying all the utility bills you will be responsible for. If you are moving from California or another more steady climate, you will need to be ready for high energy bills that will come during the summer when you will have to run your AC. If you are purchasing a new home, the builder will often have an utility bill estimate for how much you will pay, otherwise you may want to contact the local utility companies to see if they offer a per square foot estimate or if they have any content that will help you determine your potential energy bills.
How much does it cost to keep up a home?
This cost is usually dependent on how old the home you are buying is. Home repairs can range from just a few dollars to several thousand to get your AC replaced or some other major issue. Fortunately, home warranty companies charge an annual or monthly fee to cover those costs. This means that if you have a home warranty, you will just have to pay a small service fee every time something in your house breaks. The warranty company will send out a contractor to repair your home and the home warranty will cover the cost of the repairs. Home warranties can cost in the high $400’s to the high $700s for homes that are under 15000 square feet (that is the usual number, but every home warranty company is different.) and have a pool. You can request brochures from several home warranty companies and compare what each costs and what exactly they cover. Home warranties can really help you budget what your home repairs will cost you.
How much are HOA Dues?
Every HOA is different and charges different dues. HOA’s can simply provide management to the community or include community clubhouses, pools, tennis courts, golf courses, basketball courts, and more. Your real estate agent will be able to show you how much the HOA dues are for each house you visit and what is covered by each HOA. Once you are in escrow you will be able to get a copy of the HOA rules and regulations to see what exactly is permitted in the community. You will want to read through this carefully as some HOA’s have the power to require you to make certain upgrades that may cost you a lot of money. If you get these rules, you will have the chance to back out of the sale if you do not agree with the HOA’s regulations. HOA dues can be paid monthly, quarterly, or annually and we’ve seen them range from $30 to over $300, so make sure you take notice of the HOA dues when you go to purchase a home in Henderson, Las Vegas, or Boulder City.
Budgeting out what all goes into owning a home will help you make a more prepared decision when purchasing a home in Henderson, Las Vegas, or Boulder City. The last thing you want is to find yourself house poor and unable to travel and spend money on what you want because your home is taking up so much of your income. Hiring a licensed real estate agent from Nevada Desert Realty will help you make informed decisions and will get you in contact with a trustworthy mortgage lender.
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