Monday, August 5, 2013

Potential Home Buyers: How Much Can You Afford To Spend?

 Having a finger on the pulse of how much your household brings in each month and also how much money flows out in that time period will be what helps you to understand which price range you should be shopping within.

One helpful tool that can get you on the right track is the Homebuying Calculator from MSN Money. By filling out the fields required on this calculator as accurately as possible, you’ll be given a solid estimate of how much money you can put toward a house.

One area that remains hazy on this calculator, however, is the “Other monthly obligations” item. Here’s a sample of what these items might include:
  • Student loan payments
  • Healthcare/gym costs
  • Monthly utility bills
  • Your household’s entertainment and recreation budget
  • Food budget
  • Clothing budget
  • Savings budget
  • Transportation budget
In addition, first-time homeowners must realize that it costs a lot to get a home up and running. Items you may want or need to invest in include:
  • Furniture
  • Large appliances — washer, dishwasher, refrigerator, etc.
  • Furnishings and home accessories — lighting, dishes and cookware, window dressings, rugs, etc.
  • Outdoor items — lawn mower, ladder, outdoor furniture, etc.
Tally up the amount allotted to all these items — as well as any other areas where you have payment commitments — to get the best estimate possible for your home-buying budget.

Once you’ve squared away how much you can afford and are ready to begin shopping for a home, contact me to get the ball rolling on your home search!

No comments: