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How Much House Can You Afford?

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May 4, 2023

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Buying a house is one of the biggest financial decisions you'll ever make. And with so many options and factors to consider, it's easy to feel overwhelmed. One of the most critical questions to ask yourself when buying a home is, "How much house can I afford?" Luckily, Hitch is here to help.

What is Hitch?

Hitch is a user-friendly online platform that simplifies the home-buying process. It provides homebuyers with personalized recommendations on how much house they can afford based on their unique financial situation. Hitch is designed to make the home-buying process less stressful and more manageable

How Does Hitch Work?

Hitch uses a proprietary algorithm to calculate how much house you can afford. It considers your income, debts, expenses, and other financial factors to provide a customized estimate of your home-buying budget. To get started with Hitch, simply create an account and answer a few questions about your financial situation. Hitch will then provide you with an estimate of your home-buying budget, along with tips and resources to help you make informed decisions.

Benefits of Using Hitch

Using Hitch to calculate your home-buying budget has several advantages. First and foremost, it takes the guesswork out of the process. With Hitch, you'll know exactly how much house you can afford, so you can focus your search on properties that fit your budget. This can save you time, money, and frustration in the long run.

Second, Hitch provides personalized recommendations based on your unique financial situation. This means that the estimate you receive from Hitch is tailored to your specific needs, goals, and circumstances. You can trust that Hitch's recommendations are in your best interest.

Finally, Hitch is free to use. There are no hidden fees, charges, or commissions. You can use Hitch to calculate your home-buying budget as many times as you'd like, without any obligation to buy or commit to anything.

The "Should" vs. "Could" Mindset in Buying a New Home

Buying a new home is a significant financial decision that requires careful consideration. While it's essential to factor in external influences, it's crucial to prioritize your own needs and wants. This is where the "should" vs. "could" mindset comes into play.

The "should" mindset is based on external expectations, such as societal or familial pressures. It often involves thinking about what you "should" do rather than what you want to do. For example, you may feel like you should buy a home because it's the next logical step in your life, even if you're not financially ready or don't want to settle down in one place yet.

On the other hand, the "could" mindset is centered on what you could do based on your personal financial situation and goals. It involves thinking about what you want and what you can afford, rather than what you should do. For example, you may realize that you could buy a home if you save for a few more years and that it's what you really want, rather than feeling like you should buy a home because everyone else is doing it.

It's essential to understand the difference between these two mindsets because they can have a significant impact on your financial and emotional well-being. If you focus on what you should do, you may end up buying a home that you can't afford or don't really want, leading to financial stress and unhappiness. However, if you focus on what you could do, you'll make a decision that's based on your personal situation and goals, leading to greater financial stability and happiness.

In conclusion, the decision to buy a home should be based on what you can afford and what will make you happy, not on what you think you should do. By adopting a "could" mindset, you'll make a decision that's right for you, rather than one that's based on external expectations. So, before you buy a home, take the time to think about what you really want and what you can afford. It's your life, and you should make the decision that's best for you.

If you're thinking about buying a home, it's essential to know how much house you can afford. Hitch is an excellent tool to help you determine your home-buying budget. With Hitch, you can save time, money, and stress by focusing your search on properties that fit your budget. So why wait? Create an account with Hitch today and take the first step towards homeownership.

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Equal Housing Lender

Hitch, Inc. NMLS #2383367 #2383367

2158 NW Toussaint Drive. Bend, Oregon 97703

1. Qualified applicants may borrow up to 95% of their home’s value. This does not apply to investment properties.

2. HELOCs have a 10-year draw period. During the draw period, the borrower is required to make monthly minimum payments, which will equal the greater of (a) $100; or (b) the total of all accrued finance charges and other charges for the monthly billing cycle. During the draw period, the monthly minimum payments may not reduce the outstanding principal balance. During the repayment period, the borrower is required to make monthly minimum payments, which will equal the greater of (a) $100; or (b) 1/240th of the outstanding balance at the end of the draw period, plus all accrued finance charges and other fees, charges, and costs.The lender will calculate this amount by taking the outstanding Account Balance on the last day of the draw period and dividing it by 240 months and then adding any finance charge that accrues but remains unpaid during the monthly billing cycle plus any other fees, charges and costs to the fixed principal payment that is due. During the repayment period, the monthly minimum payments may not, to the extent permitted by law, fully repay the principal balance outstanding on the HELOC. At the end of the repayment period, the borrower must pay any remaining outstanding balance in one full payment.

3. The time it takes to get cash is measured from the time the Lending Partner receives all documents requested from the applicant and assumes the applicant’s stated income, property and title information provided in the loan application matches the requested documents and any supporting information. Most borrowers get their cash on average in 21 days. The time period calculation to get cash is based on the first 4 months of 2024 loan funding's, assumes the funds are wired, excludes weekends, and excludes the government-mandated disclosure waiting period. The amount of time it takes to get cash will vary depending on the applicant’s respective financial circumstances and the Lending Partner’s current volume of applications. Closing costs can vary from 3.0 - 5.0%. An appraisal may be required to be completed on the property in some instances.

4. Not all borrowers will meet the requirements necessary to qualify. Rates and terms are subject to change based on market conditions and borrower eligibility. This offer is subject to verification of borrower qualifications, property evaluations, income verification and credit approval. This is not a commitment to lend.

5. The content provided is presented for information purposes only. This is not a commitment to lend or extend credit. Information and/or dates are subject to change without notice. All loans are subject to credit approval. Other restrictions may apply.