This map from an article in the Washington Post shows the annual income required to pay the monthly mortgage on a median-priced home in 27 cities from across the United States.
Looking at the data, all I can say is, “Thank goodness I don’t live in San Francisco!”
Fortunately, I live in Northwest Arkansas…
And, if you’re reading this, chances are you do, too. For those of you moving to Bentonville or Rogers from places like southern California or New York, you’ll be blow away by the size and quality of homes relative to their price tags.
Based on national averages, a prospective homebuyer needs to earn just over $48,600 to afford a mortgage payment. Of course, this map is based on several assumptions including a 20% down payment and modest debt ratios.
If you’re ready to buy a home, it’s important that you create an expert team.
First, find a knowledgeable mortgage loan officer to determine what you can afford with the loan options available to you (called pre-qualification). Then meet with an experienced Realtor who will research the nicest homes within your price range and negotiate the best deal possible on your behalf.
The irony of this business is that, whether you work with a top-notch loan officer or a total newbie, the mortgage origination fees are about the same! So why not use the best?
It’s taken me 10+ years working in real estate and several hundred closings to learn who the true experts really are. To get my “short list” of local, expert loan officers, just give me a call at 479-640-8375.