Thinking of taking the plunge and buying your own place in the Big Apple? First things first: you need to know how much mortgage you can get approved for. But with New York being one of the most expensive cities in the world, you might be wondering if you’ll even have enough left over to enjoy that foamy latte. Never fear – we’ve done some digging to find out just how much you can get pre-approved for in New York while still being able to indulge in some of life’s finer things.
First, let’s consider what factors lenders take into account when pre-approving you for a mortgage. These include your credit score, income, debt-to-income ratio, and other debts you may have. In general, lenders want to see a credit score of at least 620 and a debt-to-income ratio of no more than 43%. However, keep in mind that these are just guidelines, and different lenders may have different requirements.
Now let’s get down to the numbers. According to a 2021 report from The Mortgage Reports, the average mortgage amount for a home purchase in New York is around $416,000. However, this varies depending on which borough you’re buying in. For example, the average mortgage in Manhattan is closer to $800,000, while in the Bronx it’s around $300,000.
So, how much can you get pre-approved for? Again, this depends on your individual financial situation. Assuming you have a credit score of 620, a debt-to-income ratio of 43%, and no other major debts, you could potentially get pre-approved for a mortgage amount of around $300,000 to $400,000. Of course, this varies depending on your income, and lenders may also take into account other factors such as your employment history.
But hold on – we promised you could still afford that latte, right? According to a 2020 report from Simple Thrifty Living, the average price of a latte in New York is around $4.50. Assuming you get one every weekday (so 5 per week), that’s about $90 a month on lattes. If you’re getting pre-approved for a mortgage of $300,000 to $400,000, that means you can still enjoy your daily latte fix and have plenty of room in your budget for other expenses like groceries, transportation, and entertainment.
Of course, keep in mind that just because you can get pre-approved for a certain amount doesn’t necessarily mean you should. It’s important to consider your individual financial situation and whether you can comfortably afford the monthly payments on a mortgage. You may need to adjust your budget or look for less expensive properties if the calculations don’t add up.
So there you have it – the answer to the burning question of how much you can get pre-approved for in New York and still have money for a latte. Remember, the mortgage amount you’re pre-approved for depends on a variety of factors, including your credit score, debt-to-income ratio, and income. And while it may be tempting to stretch your budget to the limit, make sure you’re comfortable with the monthly payments and have enough room in your budget for other expenses. Happy house hunting (and latte sipping)!
