Can I Afford to Buy a Home in Manteca?

A lender can tell you what you're approved for. That's useful, and it isn't the same as what you can afford. Three numbers get you closer.

I'm Carolyn Cardoza, a Realtor and Broker Associate with Realty 1 Team, and I've been helping Manteca buyers since 2007. Before we talk about houses, I like to talk about numbers. Here is how I do it.

Not the payment you can survive. The one that leaves room for the rest of your life.

Your monthly cost is more than the loan payment. It also includes property taxes, homeowners insurance and utilities, and some homes come with HOA fees. Add something for repairs, because a house always asks for something.

Do the math on the full list, then ask yourself: could I make this payment every month and still travel, save a little and handle a surprise?

This is the money that leaves your account before you get the keys: the down payment, closing costs, and the cost of moving in. Ask your lender for an estimate of what you'd need for the price range you're looking at, and ask early. It's easier to plan for than to discover.

Look at your savings the day after closing. If that number makes you nervous, the budget is too tight, even if the lender says yes.

When a lender approves you for an amount, that's the most they'll lend. It's not a target. Many buyers I work with choose a home well under their approval, because the cushion matters more to them than the extra room.

How much do I need to earn to buy in Manteca?

It depends on the price, the loan type and your other debts. A lender can give you a clear answer for your situation.

What's in a monthly payment?

Loan payment, property taxes and insurance, and HOA fees if the home has them.

Should I buy at the top of my approval?

Not unless you've run all three numbers and still feel good about it.

Before you fall in love with a home, find out what you're comfortable with. I'll walk through these three numbers with you, and I can connect you with a lender if you don't have one.

I'm Carolyn Cardoza, a Broker Associate and REALTOR® with Realty 1 Team in Manteca. If you would like to talk it through, contact me. You can also read about first-time buyer closing costs or what credit score you need.