{"id":4856,"date":"2021-02-10T09:07:40","date_gmt":"2021-02-10T15:07:40","guid":{"rendered":"https:\/\/theralphieandryanshow.com\/?p=4856"},"modified":"2022-01-16T15:44:50","modified_gmt":"2022-01-16T21:44:50","slug":"houses-in-illinois-how-much-can-i-afford","status":"publish","type":"post","link":"https:\/\/box5915.temp.domains\/~theralph\/houses-in-illinois-how-much-can-i-afford\/","title":{"rendered":"Houses in Illinois: How Much Can I Afford?"},"content":{"rendered":"\n<p>It is extremely easy to be overwhelmed whenever you buy a house. After all, purchasing a home is a huge step and a big purchase. So naturally, you would want your home to be a <strong>blessing and not a heavy burden<\/strong> to pay. Which begs the question: <strong>How much home can I afford?<\/strong><\/p>\n\n\n\n<p>To determine how much you can afford for a house definitely requires some math. If you are anything like me, you probably prefer to insert a few numbers here and there and see what figures your calculator will spit out. But the truth is, <strong>calculating how expensive you can go when buying a house is much more than just a few numbers punched into a calculator,<\/strong> hoping that the amount is something you can afford. There are factors that are essential to take into consideration to <strong>determine how much you can afford.<\/strong><\/p>\n\n\n\n<p>In this blog, we will go over the factors we need to determine to see how much house can you afford. Rest assured, it is not that complicated. <strong>Here I simplified it into two easy and simple steps,<\/strong> wherein by the end of this blog, you will be able to determine:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The maximum amount of loan the bank will lend you<\/li><li>The conservative maximum you can afford (Dave Ramsey&#8217;s recommendation)<\/li><li>The common factors and my recommendations<\/li><\/ul>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<iframe loading=\"lazy\" title=\"How Much House Can I Afford?\" width=\"500\" height=\"281\" data-src=\"https:\/\/www.youtube.com\/embed\/3nDodtEwm6c?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" class=\"lazyload\" data-load-mode=\"1\"><\/iframe>\n<\/div><\/figure>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_69_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6729e386d6f79\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6729e386d6f79\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/box5915.temp.domains\/~theralph\/houses-in-illinois-how-much-can-i-afford\/#Considering_Your_Specific_Budget_and_Goals\" title=\"Considering Your Specific Budget and Goals\">Considering Your Specific Budget and Goals<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/box5915.temp.domains\/~theralph\/houses-in-illinois-how-much-can-i-afford\/#Step_1_Determine_Your_Gross_Monthly_Income\" title=\"Step #1: Determine Your Gross Monthly Income\">Step #1: Determine Your Gross Monthly Income<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/box5915.temp.domains\/~theralph\/houses-in-illinois-how-much-can-i-afford\/#Step_2_Calculate_Your_Debt_to_Income_DTI_Ratio\" title=\"Step #2: Calculate Your Debt to Income (DTI) Ratio\">Step #2: Calculate Your Debt to Income (DTI) Ratio<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/box5915.temp.domains\/~theralph\/houses-in-illinois-how-much-can-i-afford\/#What_is_A_Conservative_Mortgage_Payment_Ratio\" title=\"What is A Conservative Mortgage Payment Ratio?\">What is A Conservative Mortgage Payment Ratio?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/box5915.temp.domains\/~theralph\/houses-in-illinois-how-much-can-i-afford\/#Dave_Ramseys_Way_for_Home_Mortgages\" title=\"Dave Ramsey&#8217;s Way for Home Mortgages\">Dave Ramsey&#8217;s Way for Home Mortgages<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/box5915.temp.domains\/~theralph\/houses-in-illinois-how-much-can-i-afford\/#What_is_the_Most_Common_DTI_Ratio\" title=\"What is the Most Common DTI Ratio?\">What is the Most Common DTI Ratio?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/box5915.temp.domains\/~theralph\/houses-in-illinois-how-much-can-i-afford\/#What_if_DTI_is_too_High\" title=\"What if DTI is too High?\">What if DTI is too High?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/box5915.temp.domains\/~theralph\/houses-in-illinois-how-much-can-i-afford\/#Have_Questions_Ask_The_Velasco_Reynolds_Team\" title=\"Have Questions? Ask The Velasco Reynolds Team!\">Have Questions? Ask The Velasco Reynolds Team!<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Considering_Your_Specific_Budget_and_Goals\"><\/span>Considering Your Specific Budget and Goals<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>This is simple, we will be going over the basics and rules of thumb. It is important to note that <strong>the amount you can afford should be determined by you and not anyone else.<\/strong> Never allow your lender, realtor, or anyone else even your family members determine your housing budget.<\/p>\n\n\n\n<p>You are aware of your income and your spending lifestyle, so you are the only one who can calculate how much budget you can put into buying your house. <strong>Having peace of mind is so much better than nights spent sleepless.<\/strong> Banks will often lend you an amount more than most are comfortable with. Your housing budget should only be determined by the people ultimately responsible for the loan.<\/p>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Step_1_Determine_Your_Gross_Monthly_Income\"><\/span>Step #1: Determine Your Gross Monthly Income<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The very first step is determining your gross monthly income or your before-tax income. The simplest way is by using you and your significant other&#8217;s yearly income and divide the amount by 12 for each month. If your income is fixed monthly, you can determine this using a pay stub. <\/p>\n\n\n\n<p><strong>Here are some examples:<\/strong><\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"694\" height=\"1024\" data-src=\"https:\/\/i0.wp.com\/theralphieandryanshow.com\/wp-content\/uploads\/2021\/04\/Houses-in-Illinois-694x1024.jpg?resize=694%2C1024&#038;ssl=1\" alt=\"\" class=\"wp-image-5111 lazyload\" data-srcset=\"https:\/\/i0.wp.com\/box5915.temp.domains\/~theralph\/wp-content\/uploads\/2021\/04\/Houses-in-Illinois.jpg?resize=694%2C1024&amp;ssl=1 694w, https:\/\/i0.wp.com\/box5915.temp.domains\/~theralph\/wp-content\/uploads\/2021\/04\/Houses-in-Illinois.jpg?resize=203%2C300&amp;ssl=1 203w, https:\/\/i0.wp.com\/box5915.temp.domains\/~theralph\/wp-content\/uploads\/2021\/04\/Houses-in-Illinois.jpg?resize=768%2C1133&amp;ssl=1 768w, https:\/\/i0.wp.com\/box5915.temp.domains\/~theralph\/wp-content\/uploads\/2021\/04\/Houses-in-Illinois.jpg?resize=1041%2C1536&amp;ssl=1 1041w, https:\/\/i0.wp.com\/box5915.temp.domains\/~theralph\/wp-content\/uploads\/2021\/04\/Houses-in-Illinois.jpg?resize=1388%2C2048&amp;ssl=1 1388w, https:\/\/i0.wp.com\/box5915.temp.domains\/~theralph\/wp-content\/uploads\/2021\/04\/Houses-in-Illinois.jpg?w=1500&amp;ssl=1 1500w\" data-sizes=\"(max-width: 694px) 100vw, 694px\" src=\"data:image\/gif;base64,R0lGODlhAQABAAAAACH5BAEKAAEALAAAAAABAAEAAAICTAEAOw==\" style=\"--smush-placeholder-width: 694px; --smush-placeholder-aspect-ratio: 694\/1024;\" \/><noscript><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"694\" height=\"1024\" src=\"https:\/\/i0.wp.com\/theralphieandryanshow.com\/wp-content\/uploads\/2021\/04\/Houses-in-Illinois-694x1024.jpg?resize=694%2C1024&#038;ssl=1\" alt=\"\" class=\"wp-image-5111\" srcset=\"https:\/\/i0.wp.com\/box5915.temp.domains\/~theralph\/wp-content\/uploads\/2021\/04\/Houses-in-Illinois.jpg?resize=694%2C1024&amp;ssl=1 694w, https:\/\/i0.wp.com\/box5915.temp.domains\/~theralph\/wp-content\/uploads\/2021\/04\/Houses-in-Illinois.jpg?resize=203%2C300&amp;ssl=1 203w, https:\/\/i0.wp.com\/box5915.temp.domains\/~theralph\/wp-content\/uploads\/2021\/04\/Houses-in-Illinois.jpg?resize=768%2C1133&amp;ssl=1 768w, https:\/\/i0.wp.com\/box5915.temp.domains\/~theralph\/wp-content\/uploads\/2021\/04\/Houses-in-Illinois.jpg?resize=1041%2C1536&amp;ssl=1 1041w, https:\/\/i0.wp.com\/box5915.temp.domains\/~theralph\/wp-content\/uploads\/2021\/04\/Houses-in-Illinois.jpg?resize=1388%2C2048&amp;ssl=1 1388w, https:\/\/i0.wp.com\/box5915.temp.domains\/~theralph\/wp-content\/uploads\/2021\/04\/Houses-in-Illinois.jpg?w=1500&amp;ssl=1 1500w\" sizes=\"(max-width: 694px) 100vw, 694px\" \/><\/noscript><\/figure>\n\n\n\n<p>Note that in order to qualify for a loan, you must document every type of income you have. Any other streams of income besides Form W-2 or your earned income that will help you qualify for a mortgage includes:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Alimony<\/li><li>Investment Income<\/li><li>Disability Payments<\/li><li>Social Security Pensions<\/li><\/ul>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Step_2_Calculate_Your_Debt_to_Income_DTI_Ratio\"><\/span>Step #2: Calculate Your Debt to Income (DTI) Ratio<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>After figuring out your monthly income, finding the debt to income ratio will be an easier process. The only thing you need is your list of monthly obligations or expenses.<\/p>\n\n\n\n<p><strong>The debt to income ratio basically compares your monthly income to your monthly debt. <\/strong>Borrowers that possess higher DTI ratios will experience a harder time qualifying for a loan and will probably be paying a higher interest rate.<\/p>\n\n\n\n<p><strong>To calculate your debt to income ratio, you must first add up all your monthly debt obligations including:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Monthly rent or projected house payments<\/li><li>Monthly child support payments or alimony<\/li><li>Student loan payments<\/li><li>Car payments<\/li><li>Monthly credit card minimum payments<\/li><li>Any other debts you might have<\/li><\/ul>\n\n\n\n<p>After listing all of this, you can then calculate your debt to income ratio by getting the sum of all your monthly payment obligations and divide it into your gross monthly income. Here is an example:<\/p>\n\n\n\n<p><strong>Example #1:<\/strong><\/p>\n\n\n\n<p>Rent Payment- $1,500 a month<\/p>\n\n\n\n<p>Credit Card Minimum Payment- $160 a month<\/p>\n\n\n\n<p>Student Loan- $240 month<\/p>\n\n\n\n<p>Car Payment- $300 month<\/p>\n\n\n\n<p>&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;-<\/p>\n\n\n\n<p>Total Monthly Obligations- <strong>$2,200<\/strong> a month \/ Gross Monthly Income- <strong>$8,750<\/strong> = 0.25 or 25% DTI<\/p>\n\n\n\n<p>After figuring out what your debt to income ratio is, everything will now be a breeze. <strong>Most lenders do not consider borrowers that have a DTI of over 43%. <\/strong>However, there are exemptions to the case, which is based on the strength of the borrower, loan type, and lender. Here are the maximum limits of a DTI based loan type:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Conventional Loan- <strong>45 to 50 %<\/strong> DTI<\/li><li>FHA Loan- <strong>50 to 57 %<\/strong> DTI<\/li><li>USDA- <strong>41 to 46 %<\/strong> DTI<\/li><li>VA- <strong>41 to 60 %<\/strong> DTI<\/li><li>Jumbo Loans- <strong>41 to 43 %<\/strong> DTI<\/li><\/ul>\n\n\n\n<p>When you are borrowing, it is best to pay off as much of your monthly obligations as possible. It is not suggested to run-up to the limit, so you are comfortable with your house as well as the payments.<\/p>\n\n\n\n<p>If you purchase a house that you can not pay for, you will be what they call <strong>&#8216;house poor&#8217;.<\/strong> In this situation, you will not own your house, your house will own you. If the monthly mortgage payment is too tight, it will feel like a house with a big payment. It is tough living in a house you can&#8217;t consider as your home.<\/p>\n\n\n\n<script charset=\"UTF-8\" type=\"text\/javascript\" id=\"idxwidgetsrc-23194\" src=\"\/\/for-sale.theralphieandryanshow.com\/idx\/carousel.php?widgetid=23194\"><\/script>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_A_Conservative_Mortgage_Payment_Ratio\"><\/span>What is A Conservative Mortgage Payment Ratio?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Not a lot of people have made quite an impact on American&#8217;s everyday lives and the financial industry like <strong>Dave Ramsey<\/strong> did. He has an ongoing radio show for almost <strong>30 years<\/strong> talking about conservative finances. If you are not familiar with Dave Ramsey&#8217;s guidelines, here they are:<\/p>\n\n\n\n<ol class=\"wp-block-list\"><li>Save $1,000 for a starter emergency fund<\/li><li>Pay off all debt (except the house) by using the debt snowball.<\/li><li>Save 3-6 months expenses in a fully-funded emergency fund.<\/li><li>Invest 15% of the household income for <a href=\"https:\/\/theralphieandryanshow.com\/the-best-chicago-suburbsfor-retirement\/\" target=\"_blank\" rel=\"noopener\">retirement<\/a><\/li><li>Save for children&#8217;s college fund<\/li><li>Pay off home early<\/li><li>Build your wealth and give<\/li><\/ol>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Dave_Ramseys_Way_for_Home_Mortgages\"><\/span>Dave Ramsey&#8217;s Way for Home Mortgages<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>Here are <a href=\"https:\/\/www.daveramsey.com\/blog\/how-much-house-can-i-afford\" target=\"_blank\" rel=\"noopener\">guidelines for an extremely conservative approach:<\/a><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>A fixed-rate conventional loan.<\/strong><\/li><li><strong>A 15-year term.<\/strong><\/li><li><strong>Monthly payment of no more than 25% of your monthly take-home pay.<\/strong><\/li><\/ul>\n\n\n\n<p>Here is an example following this approach:<\/p>\n\n\n\n<p><strong>Example #1:<\/strong><\/p>\n\n\n\n<p>Yearly Income- $75,000<\/p>\n\n\n\n<p>Tax Bracket- 22%<\/p>\n\n\n\n<p>&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;-<\/p>\n\n\n\n<p>Net Yearly Income- <strong>$58,500<\/strong> \/ 12 months = <strong>$4,875<\/strong><\/p>\n\n\n\n<p>Net Monthly Income- <strong>$4,875<\/strong> x 0.25 = <strong>$1, 218<\/strong><\/p>\n\n\n\n<p>Spending $1,200 on housing while maintaining a 15-year mortgage will make your price range at <a href=\"https:\/\/theralphieandryanshow.com\/how-many-chicago-suburbs-are-there\/\" target=\"_blank\" rel=\"noopener\">Chicagoland<\/a> market <strong>$100,000- $150,000.<\/strong><\/p>\n\n\n\n<p>However, Dave Ramsey&#8217;s approach may be too extreme especially with the extremely high <a href=\"https:\/\/theralphieandryanshow.com\/what-is-the-average-cost-to-build-a-house-in-illinois\/\" target=\"_blank\" rel=\"noopener\">cost of living and housing<\/a>. <strong>A lot of people struggle to find affordable housing using his way. <\/strong>However, I think his approach is more appropriate back in his day when the dollar was still linked to gold and the FED was not printing trillions of dollars, but times have changed.<\/p>\n\n\n\n<div class=\"wp-block-buttons is-content-justification-center is-layout-flex wp-block-buttons-is-layout-flex\">\n<div class=\"wp-block-button is-style-outline is-style-outline--434b454565705fa9311aba3387d8f4f6\"><a class=\"wp-block-button__link\" href=\"https:\/\/theralphieandryanshow.com\/6-steps-to-buying-a-home-in-illinois\/\" target=\"_blank\" rel=\"noopener\">6 Steps to Buying a Home in Illinois<\/a><\/div>\n<\/div>\n\n\n\n<hr class=\"wp-block-separator\"\/>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Most_Common_DTI_Ratio\"><\/span>What is the Most Common DTI Ratio?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>A lot of financial advisers agree with the idea that homeowners should avoid spending more than <strong>28 % of their gross monthly income on housing and no more than 36 % on their total debt.<\/strong> This is referred to as the <strong>28\/36 rule<\/strong>, giving homeowners a quick basis on what they can afford each month. Another rule is <strong>29\/41,<\/strong> giving debtors extra slack on their obligations.<\/p>\n\n\n\n<p><strong>The <a href=\"https:\/\/www.investopedia.com\/terms\/t\/twenty-eight-thirty-six-rule.asp\" target=\"_blank\" rel=\"noopener\">28\/36 rule<\/a> is often the best indicator of home affordability and peaceful nights, <\/strong>However, this rule does not particularly use home utilities and expenses, wherein 28% of total housing costs are a better metric that includes HOA fees, paid maintenance, and utilities. Here is an example:<\/p>\n\n\n\n<p><strong>Example #1:<\/strong><\/p>\n\n\n\n<p>Yearly Income- $75,000<\/p>\n\n\n\n<p>Tax Bracket- 22%<\/p>\n\n\n\n<p>&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;&#8212;<\/p>\n\n\n\n<p>Net Yearly Income- <strong>$58,500<\/strong> \/ 12 months =<strong> $4,875<\/strong><\/p>\n\n\n\n<p>Gross Monthly Income <strong>$6,250 <\/strong>x 0.28= <strong>$1,750<\/strong> monthly mortgage or 35% of Net Monthly Income<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_if_DTI_is_too_High\"><\/span>What if DTI is too High?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>If your DTI ratio is higher than <strong>43 percent<\/strong> and you are in need of a loan, there are some things you can do and consider to help improve your chances of availing a home loan. Simple and straightforward, the factors are:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Consider your budget<\/li><li>Get a second opinion<\/li><li>Increase your income<\/li><li>Add a co-signer<\/li><\/ul>\n\n\n\n<p>However, if none of these factors are an option, here are some things you can do but this requires more work for you.<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>Consider another Loan Program.&nbsp;<\/strong>Although you are likely to get the best rate in conventional, the guidelines are more strictly implemented. You can consider using an FHA Loan or a VA Loan since they have more forgiving DTI ratios.<\/li><li><strong>Paying Down the Rate.&nbsp;<\/strong>If you have cash reserves at your disposal and you can afford to invest in your home, you can lower the payment by paying down your mortgage interest rate.<\/li><li><strong>Restructuring Debt.&nbsp;<\/strong>There are times where you can refinance or pay down some of your loans to lower your DTI ratio. If you are capable of paying off some loans, I would suggest that you consult a lender for guidance. Remember that no debt is equal.<\/li><\/ul>\n\n\n\n<p>Here are all the basic pieces of information you need to know on how to determine how much house you can afford. I hope that this blog has helped you and provided you with insight on the topic. <\/p>\n\n\n\n<div style=\"text-align:center\" class=\"wp-block-genesis-blocks-gb-cta gb-block-cta\"><div class=\"gb-cta-content\"><h2 class=\"gb-cta-title gb-font-size-32\" style=\"color:#32373c\"><span class=\"ez-toc-section\" id=\"Have_Questions_Ask_The_Velasco_Reynolds_Team\"><\/span>Have Questions? Ask The Velasco Reynolds Team! <span class=\"ez-toc-section-end\"><\/span><\/h2><div class=\"gb-cta-text gb-font-size-32\" style=\"color:#32373c\"><p>Give us a call to learn more about local areas, discuss selling a house, or tour available homes for sale.<\/p><\/div><\/div><div class=\"gb-cta-button\"><a href=\"tel:+ 16305349357\" target=\"_self\" rel=\"noopener noreferrer\" class=\"gb-button gb-button-shape-rounded gb-button-size-medium\" style=\"color:#ffffff;background-color:#3373dc\">1-630-534-9357<\/a><\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>It is extremely easy to be overwhelmed whenever you buy a house. After all, purchasing a home is a huge step and a big purchase. So naturally, you would want your home to be a blessing and not a heavy burden to pay. Which begs the question: How much home can I afford? To determine [&hellip;]<\/p>\n<p><a href=\"https:\/\/box5915.temp.domains\/~theralph\/houses-in-illinois-how-much-can-i-afford\/\" class=\"more-link\" title=\"Read More\">Read More<\/a><\/p>","protected":false},"author":3,"featured_media":4899,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","om_disable_all_campaigns":false,"rank_math_lock_modified_date":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","_glsr_average":0,"_glsr_ranking":0,"_glsr_reviews":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[36,137,27],"tags":[85,79,82,80,81,25],"class_list":{"0":"post-4856","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-buying-a-home","8":"category-home-buyer-guides","9":"category-mortgage","10":"tag-buying-a-home-for-the-first-time","11":"tag-buying-a-house","12":"tag-buying-a-house-for-the-first-time-in-illinois","13":"tag-first-time-home-buyer","14":"tag-how-to-buy-a-home","15":"tag-mortgage","16":"entry"},"aioseo_notices":[],"jetpack_sharing_enabled":true,"featured_image_src":"https:\/\/i0.wp.com\/box5915.temp.domains\/~theralph\/wp-content\/uploads\/2021\/02\/IMG_7441-scaled.jpg?resize=600%2C400&ssl=1","featured_image_src_square":"https:\/\/i0.wp.com\/box5915.temp.domains\/~theralph\/wp-content\/uploads\/2021\/02\/IMG_7441-scaled.jpg?resize=600%2C600&ssl=1","author_info":{"display_name":"Rafael Velasco","author_link":"https:\/\/box5915.temp.domains\/~theralph\/author\/rafael-velasco\/"},"jetpack_featured_media_url":"https:\/\/i0.wp.com\/box5915.temp.domains\/~theralph\/wp-content\/uploads\/2021\/02\/IMG_7441-scaled.jpg?fit=2560%2C1707&ssl=1","_links":{"self":[{"href":"https:\/\/box5915.temp.domains\/~theralph\/wp-json\/wp\/v2\/posts\/4856"}],"collection":[{"href":"https:\/\/box5915.temp.domains\/~theralph\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/box5915.temp.domains\/~theralph\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/box5915.temp.domains\/~theralph\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/box5915.temp.domains\/~theralph\/wp-json\/wp\/v2\/comments?post=4856"}],"version-history":[{"count":9,"href":"https:\/\/box5915.temp.domains\/~theralph\/wp-json\/wp\/v2\/posts\/4856\/revisions"}],"predecessor-version":[{"id":8204,"href":"https:\/\/box5915.temp.domains\/~theralph\/wp-json\/wp\/v2\/posts\/4856\/revisions\/8204"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/box5915.temp.domains\/~theralph\/wp-json\/wp\/v2\/media\/4899"}],"wp:attachment":[{"href":"https:\/\/box5915.temp.domains\/~theralph\/wp-json\/wp\/v2\/media?parent=4856"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/box5915.temp.domains\/~theralph\/wp-json\/wp\/v2\/categories?post=4856"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/box5915.temp.domains\/~theralph\/wp-json\/wp\/v2\/tags?post=4856"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}