Buying a home for your family is an overwhelming decision and it takes more than just saving money though it is one of the most important aspects. There is also the managing your budget. You need to look at the whole financial status between you and your partner or if you are single, what is your personal financial status too. There are also other considerations like should you buy an existing home or would you consider a brand new. How big will it be a cottage or a mansion? Should you choose a fixer-upper or move-in ready type? Where do you want to have this house, in the city or in the country? These are just some of the many questions that you need to answer to come up with your budget and learn to manage your budget to realize that home that you have aspired for.
What are the things that you need to do to make out your plan?
If you have already the details of your home, you can then scout around for the prevailing price. You can do that by checking on the ads to make it a more realistic figure.
- Review your income, include even the extra earnings that you may be making.
- Write down you monthly budget to include food, rent, utilities, clothing, transportation, medical, charitable gifts, personal, recreation and others.
- If you want to get a loan for the house, then consider how much of a 15-year fixed rate mortgage can you afford.
- Also, once the house is there, there are other fees that needs to be covered too like HOA fees, repair and maintenance, décor, furniture and care of the lawn must all be budgeted.
- Also consider what other projected expenses that might happen in the course of the mortgage term like children going to school, milk for the baby, diapers, daycare and others.
Ideally, getting a monthly mortgage payment of around 25% of your income is a safe projection to be able to get that loan for the home. Just make sure that you should stick to the most basic and if there are ways to augment your income, do that too.