This is probably the #1 most important question you need to ask yourself. There is nothing worse than buying a house in which you can’t afford to pay for. Foreclosure rates are currently on the rise because too many people are buying the home they want instead of buying the home they can afford.

What you can afford is directly related to your monthly income, current bills & expenses, interest rates and your credit score. The logical way to look at is this: add up all your monthly bills (rent, car payments, credit cards, utilities, insurance and groceries) and compare the total amount of money going out with money coming in. Then you need to consider how much of the excess you can put towards your mortgage payment and still have a little cushion at the end of every month. The best way to find out what you can afford is to consult a loan officer.

Once you find out how much you can afford each month for a mortgage, a mortgage broker can run the numbers and let you know the total loan amount you are working with when you start looking at real estate in Tehachapi or where ever you decide you want to live.

To get an idea of how much a mortgage payment might be use our mortgage calculator.

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