Does Your Home Work With Your Budget?

Whether you’re looking to move out of your parents’ home, your apartment or your own home that has become too small for your family, it can be difficult to know how much home you can afford that will truly work for your budget. And because the last thing you want is to be house poor, you want to ensure your home fits into your budget before you buy.

Does the Home Fit?

The following are some things to consider when determining how much home you can afford a month.

First, consider how much you brought home per year for at least the last two years. Count your base pay. If you’re in a position that receives overtime and/or bonuses, don’t include those in your house budget, because they won’t necessarily be income you can depend on each month. You only want to use the number that you know will be there with your job no matter what.

Second, what else do you currently own right now? Do you have a car payment? What about student loans and credit card debt? These items need to be paid every month. Therefore, if they total a high payment amount each month, maybe you should work on paying off any debt you owe first and, then, move into searching for a new home later.

Remember, budgeting is the key to living a financially free life! Don’t break your budget trying to buy a house you can’t really afford. Instead, be smart when it comes to purchasing your home and use your budget to find the home that fits—not the other way around.

Are you ready to find a home within your budget? Call us now to learn more how we can help you obtain the home of your dreams!