Residential Real Estate, Explained
How Much Income Do You Really Need to Afford a $365K Home?
Buying a home is about more than the sale price. This video breaks down the real upfront and monthly costs of a $365,000 home, including down payment, closing costs, taxes, insurance, PMI, and the income needed to buy comfortably without becoming house poor.
Key Points:
- A 3% down payment ($10,950) plus closing costs means you need roughly $22,000 upfront to get the keys.
- Your monthly payment isn't just principal and interest, higher local taxes, insurance, and PMI push it to around $2,900.
- Banks may approve you based on an $8,700/month income, but maxing that out is how people become house poor.
- A safer target is keeping your income at 2.5x the mortgage payment, which requires earning about $87,000 a year.
- A pre-approval letter dictates what a bank is willing to lend, not what you should actually spend.
Why Your Buying Conditions Matter Just as Much as Your Selling Condition
In a competitive seller’s market, protecting yourself on the buy side is critical. This video explains why buyers need strong contingencies, inspection periods, and financing in place before making a move.
Key Points:
- Protect yourself on the buy-side before chasing a property, never wait until closing to build a safety net.
- Louisville’s 3.1% absorption rate still heavily favors sellers, making weak buy-side terms a serious financial gamble.
- Lock down your contingencies, inspection periods, and financing upfront before making a move.
- The market doesn't care about your overall game plan once you make an offer; it only cares about the written contract.
- A strong selling position is completely useless, and a massive liability, if your buying conditions are weak.