The average home requires the average income. It never makes sense to earn more than you need to buy the least expensive house you can comfortably live in. “Comfortable” means no sacrifices, not even small ones.
Home prices continue to rise, but you can still acquire a property when and where you want. Let’s explore how much income you need to buy the average American home.
The Right Income
House prices vary based on several factors. However, according to the National Association of Realtors, a buyer needs a salary of at least $46,500 to purchase a home in today’s real estate market.
Many prospective homebuyers seem to think otherwise because of the rising house prices that made them believe they need to earn more to acquire a house. The truth is, you don’t.
Currently, the median house price is $341,000, which is affordable for a lot of people today.
Going back to the amount of income you need to buy the average home, it will still come down to the type of house you want to live in. Here, several factors will come to play including, location, style, size, and amenities.
The bottom line here is, there’s no one answer that will fit everyone. Still, it’s a good thing to have a general idea of the amount of income you need to have to acquire a house in the US today.
The Factors that Affect Your Home Budget
As mentioned, there are many factors that may affect your budget for a house. You need to remember that the higher the down payment, the less money required to pay monthly. Moreover, the higher the interest rate on a mortgage, the better home deal you can get.
Do a bit of research, and you’ll find more wiggle room, too.
You should also keep in mind that home loan programs today are flexible. Therefore, there really is no required minimum income to purchase a property. So, if you’re a first-time homebuyer, it’s essential you explore your options and shop around for mortgages.
Finally, your budget will also be affected by the type of home you purchase. Even if it’s within the “average” home in the US, several factors will affect the price.
Seek Professional Help
Whether it’s your first time purchasing a house or not, professional help can go a long way. A professional can help you find the best homes that will suit your budget. Furthermore, they can help get your finances in order to ensure you can maintain the mortgage repayments in the future.
Fortunately, there are many mortgage companies you can tap into to help you buy a home with your income. Also, as mentioned, don’t be afraid to shop around for mortgage prices. Doing so will help you get the best deals and rates to make it easier for you to finally have the house of your dreams.
Now, you are ready to start your homebuying process! With the “right” income, which is at least $46,500, you can finally have the house that you have always wanted without sacrificing the little joys in your life.
If you think your income makes the cut, it’s time to own that dream house! paloRATE offers the best home loan rates in Bellevue. We provide home loans with competitive interest rates and closing costs. Contact us today.