When searching for a house, we often let our emotions get in the way and throw all logic out the window but we should always ask ourselves, “Can I actually afford this house” before we rush into signing any important documents.

So how can you determine and measure the affordability factor? It all depends on how much you are willing to pay up front (down payment), how much you want to pay for your mortgage on a monthly basis, and of course, your total income. Other factors to consider are any big expenses such as university costs, student loans, medical bills, or your monthly savings account or retirement contributions. You must also factor in your monthly expenses such as credit card bills, car payments or any other expenses that may get in the way.

Your credit rating will come into play as well as this will determine how much you will be able to take out in loans for your mortgage so be sure to spend some time paying off as many debts as possible and increasing your credit score before looking for that perfect new home.

Now as far as actually calculating the affordability numerically, I could bore you with financial details and minutia or I can make it very simple for you. Go online and search for an affordability calculator. Many websites including cnn.com, msn.com and many real estate agent websites have a free online form where you plug in certain numbers and figures to determine the affordability of a home you are interested in.  They will ask about your income and any expenses you may have as well as other factors to quickly calculate this.

As a general rule, the debt to income ratio (how much you owe divided by how much you make) must not surpass 36% and housing payment to income ratio (housing payment per month divided by income per month) must be about 28% but of course, it varies from website to website. Using pre-determined formulas and percentages, these calculators will do the math for you while asking you very simple and direct financial questions. It’s as simple as plugging in the numbers and clicking a button. It’s quick, easy and convenient.

Once you determine exactly how much you can afford to spend on your house and for your monthly mortgage payments then you can begin searching for your perfect new home! Once you have narrowed your home search down to your top few contenders make sure to research the neighborhoods, communities and surrounding areas of each home on MoversAtlas! This is an important step that many first time and experienced home buyers overlook. It is easy to get caught up in the excitement of your individual home but the surrounding area is almost just as important as the home itself!

If you enjoyed reading this post you will find the main Mover’s Atlas site even more Interesting! There you can discover important information about what surrounds your current or future Florida home, give it a look: Mover’s Atlas.