How Much House Can You Really Afford?

You are going to need to be realistic in deciding how much money you can really spend on a home every month. You don’t want to become house poor, where every penny that you make goes into paying for your home. You are going to want to still be able to enjoy life as a homeowner.

So, how much can you really afford? Here are some tips to help you decide.

Meet with a mortgage specialist. The first step that you need to do is to meet with someone who can help you get started. He or she will help you get your paperwork in order to see how much money you can get for a mortgage loan.

However, you need to use that as a starting point. Just because you are pre-approved for a certain amount doesn’t mean that it is a feasible amount for you. You need to take a hard look at your finances to find out how much you can comfortably spend a month on a mortgage. A good starting point is an amount that you spend on rent each month. Is that too much or can you afford a little more without overstretching your budget?

You need to consider some of your other expenses. That being said, you are going to have other expenses that come along with a home. You are going to have to pay for your heating, water, and electricity. Not only that, but you are also going to have to think about insurance and your taxes (which may or may not be included in your monthly mortgage payment).

It is also important to have some extra money available for anything that needs to be fixed. You may have to make a few minor changes to your home, like changing light bulbs, and upgrading faucets, but you may also have to replace some of your appliances and fix a water leak. All of these can add up quickly, which is why it is a good idea to make sure that you have some extra money available for that reason.

Then, there are your other expenses that you may or may not be paying at this time. You are still going to need to have money to go to the store for groceries and other essentials. You may have a cell phone plan that you pay now and will have to continue to pay. Most families need internet and television, so you are going to need to budget for that too!

Once you decide, you should never go over your budget. It is important that, once you start looking at homes, you stay within your budget. You don’t want to fall in love with a home that you can’t afford. You may try to find a way to pay for it, but it is going to be at the expense of something else!

Buying a house isn’t as simple as deciding how much you want to pay for your home. In fact, it is quite complicated. You should always start by meeting with a professional to help you get started. Then, you can take a harder look at your finances to see how much you can comfortably afford.

You can’t forget about all of the other costs of owning a home, such as electricity and upkeep. You may have to pay your taxes and insurance separately (or with your mortgage). Your family will still need groceries, cell phones, and even internet. All of these add up so it is important to give yourself some give when it comes to how much you can realistically afford!

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Previously published on Medium and/or Newsbreak.