Buying A House You Can Afford

Dated: 08/11/2017

Views: 16

The Quick and Easy Guide to Determining How Big of a Mortgage Your Family Can AffordAre you shopping around for a new house or apartment? One of the key considerations you will need to make is figuring out how much you want to invest in your new home. Below you'll find our quick and easy guide to determining just how much "house" you can afford. Let's get started!

Start By Making A Proper Budget

The first thing you'll want to do is sit down and get a full budget put together. The easiest way to get the process started is to begin with two lists: income and expenses. For the income list, write down the amount of money your family brings in each month after taxes. If you have side income sources or extra income that tends to fluctuate over time, use the average amount for the past six months.

For the expenses list, write down all the spending that you do each month. Start with the major, stable items like rent, utilities and the like. Then work your way through to discretionary spending like dining out and other sources of entertainment. If it helps, go through your bank and credit card statements to ensure that you are not missing anything.

Once you have an accurate budget, you'll know exactly how much you can afford to pay toward your mortgage payments each month.

Figure Out How Much You Can Put Down

Next, you'll need to think about how much cash you want to pay as a down payment on your home. The larger the down payment you can afford, the smaller amount of mortgage financing you'll need. While it might seem like a good idea to put as much as you can down, there are some things to consider. Any money you put against your down payment is going to be unavailable to you, which reduces your financial options. You'll also lose the opportunity to invest it, which means missing out on potential returns over time.

Determine How Much House You Actually Need

Finally, give some thought as to how large or luxurious a home you want to buy. For example, if you have a small family and don't need a large four- or five-bedroom house, you can instead opt for a smaller but more luxurious home. Conversely, if space is a priority, you may want to forego the high-end options to ensure you have enough room.

When you're ready to explore your mortgage options, we're ready to help. Contact your trusted mortgage professional at your convenience. We're committed to helping you purchase the home of your dreams.

Want to Advertise on this Site?

Latest Blog Posts

3 Key Ways That Driverless Cars Are Going To Reshape How We Design And Use Our Homes

3 Key Ways That Driverless Cars Are Going to Reshape How We Design and Use Our Homes Are you ready for the coming shift to driverless cars? While it might seem like some sort of futuristic vision,

Read More

The Pros And Cons Of A Large Down Payment When Buying A Home

The Pros and Cons of a Large Down Payment When Buying a Home If you are in the market for a new home, one of the considerations you will need to make is how much to invest in your down payment.

Read More

Whats Ahead For Mortgage Rates This Week December 11 2017

What’s Ahead For Mortgage Rates This Week – December 11, 2017 Last week’s economic reports included readings on projected top housing markets for 2018, weekly readings on mortgage rates and

Read More

Thinking About Purchasing An Investment Property Here Are Some Tips On How To Avoid Buying A Money P

Thinking About Purchasing An Investment Property? Here Are Some Tips On How To Avoid Buying A Money Pit. Investing in a property can be a great way to make money. However, if you don’t do your

Read More