Mortgage basics

How much house can I afford in Spokane?

Start with the monthly payment you are comfortable with, not a price. Take off property taxes, insurance and any HOA dues, and what is left pays principal and interest. That amount, your interest rate and your down payment set the price you can afford.

Work backwards from the payment

A lender will tell you the most you can borrow. That is not the same as what feels comfortable. Pick the monthly number you can live with first. The “What can I afford” calculator turns it into a price using your own figures.

What is in a monthly payment

  • Principal and interest. The loan itself.
  • Property taxes. These vary across Spokane County with the school district and local levies.
  • Homeowner’s insurance. Get a quote for the actual address. Homes near wildland can cost more to insure.
  • Mortgage insurance. It may apply depending on your loan and down payment.
  • HOA dues. Common in planned communities such as Eagle Ridge.

What a lender looks at

Your income, your monthly debts, your credit and your down payment. The lender compares your debts and the new payment with your income. The limits differ by loan type, so I check yours against the programs you qualify for.

Do not forget the cash up front

You need your down payment plus closing costs, and it is wise to keep savings aside for the first year in the house.

The same payment buys different homes in different places

Because taxes, insurance and HOA dues change from one area to the next, a payment that fits in one part of the county may not fit the same price in another. I run the full payment on each home you are serious about.

Next step

Try the calculator, then call me for a pre-approval. It is a short conversation and it gives you a real number to shop with.

Next step

Want to see it in person?

Tell me what you are looking for and I will line up homes, run the payment on each one and answer the questions a listing can’t.