How Much House Can I Afford For My Family Living In Atlanta Georgia?

How Much House Can I Afford For My Family Living In Atlanta Georgia? How much will I qualify for? Should I spend as much as I get approved for? How does the bank calculate how much I can afford? What factors should I consider? Sound familiar…

So you’re thinking about moving to atlanta and before you do you’re wondering like how much home can i afford right there’s a lot of variables that go into that maybe you’re a first-time homebuyer you’re moving and getting your family home for the first time maybe you just haven’t done it in a long time or you were single and now you have a family uh or maybe

You’re wondering about property taxes and income tax and how that factors into your life and your lifestyle and all the things that go into how much home can you afford in atlanta georgia and that’s exactly what we’re going to be talking about in this video so if you’ve got any interest whatsoever in buying a home in georgia or you’ve got some uncertainty around

Your budget and what that might look like you’re going to want to stick around for that and we’re going to get after it right now hey if this is your first time to the channel and you want to know everything there is to know about eating sleeping working playing the good and the bad of living in atlanta georgia well then subscribe below and ring that bell for

Notifications so you can be the first to know about the current market here in atlanta or what it takes to buy a house my name is denny the team and i get calls each and every day from people just like you looking to make the move to atlanta and we absolutely love it so whether you’re moving next week next year or anytime in between give us a call shoot us a text

Send us an email schedule a zoom and we’d be happy to help you make a smooth move to atlanta as i mentioned in this video what we’re going to talk about is we’re going to talk about how much home you can afford what all the expenses are going to be what your budget’s going to look like and i’m going to take it from the perspective of you know a family and someone

That makes about 180 000 a year now you may not make that much or you may make 10 times that much but as a family man that lives in atlanta i feel pretty confident about my ability to kind of help you unpack all the different variables and all the moving parts so that you can be confident in your decision and you don’t and you can that you can comfortably afford the

Home that you’re looking at because let’s face it with the rising prices and rates and all the different things that are going on it’s hard to be completely confident and certain right and with information and competence comes confidence and so i want to arm you with all the information you need to make a confident decision i got some notes just because i don’t

Want to be doing a bunch of math you know while i’m sitting here talking to you and so i wrote that down in advance just so i can keep myself on track now again i want to give you the perspective that we’re starting we’re talking about a family so married maybe a couple of kids uh income 180 000 a year this is that’s going to be gross before taxes and expenses

Now this could be one person or it could be you know husband and uh wife or both spouses or partners um working and so there’s all kind of different family dynamics and sometimes both partners work sometimes one spouse works and one stays home your lifestyle is not as much an interest is how that translates into you affording or buying a home so here’s the first

Thing that you need to understand yes your credit is important because your credit your credit bureau your credit worthiness is going to determine whether or not you qualify what your rate’s going to be and that’s one of the things the lender is going to look at first thing they’re going to look at beyond your credit that a lot of people don’t understand is called

Your dti your debt to income ratio and there’s two numbers i want you to remember 28 and 36 28 of your gross income can be spent on your home on the debt on your mortgage but 36 of your gross income can be spent on all of your debt including your home and danny what does that mean that means your home plus your car credit cards student loans but did you

Get some furniture that you borrowed money for did you buy a lawnmower did you you know put your vacation on a credit card like anything and everything any kind of debt goes in that total bucket twenty eight percent of a hundred and eighty thousand dollars is fifty thousand four hundred dollars that’s the most you can spend on your mortgage thirty six percent of

A hundred eighty thousand dollars is sixty four thousand eight hundred dollars so you take the sixty four thousand eight hundred and you subtract the fifty thousand four hundred and that gives you fourteen thousand four hundred dollars or twelve hundred dollars a month here’s the thing if your car maybe it’s car one or car two right all these things that go into

Debt maybe your credit cards your student loans that lawnmower you bought personal loans other loans if all of that is more than twelve hundred dollars it’s going to eat into your housing or your mortgage budget and so i’m going to give you a couple of examples so you can kind of uh see how that feels the total 28 of 180 000 50 400 if you just divide that by 12

You can spend 4 200 a month on a mortgage you may or may not want to but that’s the first kind of ratio you look at well remember out of your gross your gross income 180 000 you got to take federal income tax out of there which is going to be around the 20 to 24 range of that total probably it works in brackets like you pay less for the first 10 000 and a little

Bit more for the next maybe 40 thousand a little bit more and you’ll end up in you know the 20 something percent tax bracket but maybe the effective rate uh is about 32 000 out of your 180 and then another 5.75 state income tax and so about 40 to 45 000 of the 180 is gonna come out for taxes and you’ll have about you know 140 maybe a little bit less so you’ll

End up with around you know 11 500 ish a month for your take-home right after taxes so that’s really what you’re where your budget starts and then what all the things that you do with that money right hopefully uh if you’re anything like us you give some of it away to uh a worthy cause an organization people in need um we support our church here locally and then

Ministries all over the country and then other non-profits that we just feel like are doing really cool stuff with uh you know organizations or people and things that we love and that we want to support and so hopefully you’re giving some of that money away and then hopefully you’re saving some of it and so if you give some away and then you save some if you don’t

Save any for a rainy day that could get you in hot water or if you don’t save any for hopefully that retirement one day well then you’ll just always be working so you know out of that 11 500 maybe you’ve got like seven or eight thousand dollars a month to work with right and so maybe you don’t need to be spending forty two hundred of seven thousand dollars uh

Of disposable income on your mortgage what is in that forty two hundred dollars well you have the principal that you borrow you have the interest on the money that on the principal that you borrowed you have the property taxes which can be about one percent of the home value so you know 500 000 our house moved five grand a year and the um homeowner’s insurance

And potentially the homeowners association if there’s like a neighborhood association maybe your family lives in a swim tennis basketball gazebo let’s just like the neighborhood i live in but maybe there’s a bunch of community amenities and they need to take care of the landscaping and so uh pity p-i-t-i is the principal interest taxes and insurance and then you

Might need to think about is there an hoa and so all of that you know is going to go into like how much does it cost in your your home maintenance your utilities so it’s more than just your mortgage but in that principle interest taxes and insurance for you can do up to 4200 and then obviously your credit and your rate and your down payment all are factored into

That and we’ll do um an example at the end so if you’re spending the 4200 and you have a total of 36 or 64 800 of 180 000 well that’s 1200 a month that you have for other debt and so you know do you have one one one car financed is it two cars that are financed do one or both of you have some student loans uh outstanding as well and those can be treated a little

Bit differently i can introduce to our lender who can help you walk through how that’s treated but did you buy any furniture lawn equipment any personal loans is there any debt because if that’s more than that twelve hundred dollars let’s use an example let’s say that you’ve got the 4 200 max you’ve got the 1200 other debt you’ve got a total of 5400 a month that

Can be for debt well if one car is 600 and the other car is 500 then the student loan or combined student loans is 400 and then maybe one credit card at 200 another one at 100 and other debt is 300 well that’s 2100 a month of other debt and so the 5400 you’re gonna minus the 2100 that’s gonna leave you thirty three hundred dollars a month that you can use to

Qualify for a mortgage and so now for a quick example of what that would look like if you were gonna spend not the whole 4 200 but what what was more in line with what you could afford comfortably which in this example we’ve talked about is about 3 300 and so you can get a 550 000 home and let’s just say you only had ten percent to put down um so that would be fifty

Five thousand let’s say you didn’t have the whole hundred and you know uh hundred and ten thousand to do so ten percent down fifty five thousand uh you’re also going to need some closing costs which are gonna be be about ten thousand dollars could be a little bit less but let’s just say it’s gonna be about ten thousand dollars and so fifty five thousand down with

Ten thousand dollars in closing costs you’re gonna need sixty five thousand dollars cash to close that’s what you’ll need to secure the property i want to break down the payment for you the principal and interest and i’m just going to use like a little four percent it’s been bouncing around up and down lately but four percent the principal and interest is going to

Be about and fifty dollars and then when you add in five hundred dollars a month uh about six thousand a year for taxes property taxes and then another hundred dollars a month for property insurance and then lastly two hundred and fifty dollars a month for mortgage insurance that’s that pity uh p-i-t-i principal interest taxes and insurance all of that is about 3

200 and then let’s say there’s a hundred dollars a month and uh homeowners association dues so that puts you right at thirty three hundred dollars a month and so just to kind of review and put a bow on this hundred and eighty thousand dollars in income you’re gonna you know have about 25 ish with federal and state taxes and then after that you want to give some

Away you want to save some for your future and then you’re going to have the rest to live off of and you don’t want to spend it all on your lifestyle unfortunately there’s probably some debt in there maybe cars or student loans or personal loans or credit cards so that’s going to reduce the amount you’re going to be able to use to buy a home but in this example

We talked about a 550 000 home you’re going to need about sixty five thousand dollars to close and that’s gonna leave you with about thirty three hundred dollars a month in a home payment and then you got all that other stuff from your housing and transportation food groceries entertainment lifestyle kids all that stuff so hopefully that was helpful if you have

Any questions or comments leave those below as always we realize that your situation is different this is probably not exactly like your life or lifestyle looks like but myself and our team of uh partners and vendors and lenders we’re all here to serve you so whether you’re moving next week or next year anytime in between call text email schedule a zoom happy to

Help you make a smooth move to atlanta and in the meantime until we see you in person hopefully we’ll see on the next episode you

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How Much House Can I Afford For My Family Living In Atlanta Georgia? By LIVING IN ATLANTA GEORGIA