Agent Irvin Ricano

This is an overview of how interest rates and down payments effect purchasing power. This example is for a $450k home. If your interest rate goes down 1% you would need to make $105k instead of $115k. If you made a 20% down payment instead of a 5% down payment you would need to make $100k instead of $115k. Now if you can get 1% lower interest rate and put a 20% down payment you would need to make $92k a year. The mortgage system is complex but if you focus on getting a good credit score and saving as much as you can on the down payment you could make less per year and buy more. Again, I know a lot of us don't have a 90k down payment but like I have said before get into something that you can afford now and let Denver's strong housing market make you money. You can build a great credit score and its free so I would start building that up as soon as possible. Stay tuned for more tips and trick on how to get the home you want.

Pro tip: Two brains are better than one or in this situation two incomes are better than one. If you have a partner consider adding their income to qualify for more. Those of you that are on your own, qualifying with a friend is starting to become a common thing. Especially with increasing home prices. Just make sure you and your friend are okay living with each other.