Make your Budget your Best Friend: Budgeting & Affordability
Now that you’ve decided you want to purchase a home, it’s time to look at what you can actually afford. This means more than knowing how much money you qualify to borrow. You need to look at your complete financial picture and understand how purchasing a house fits into it.
Not sure what your financial picture entails? We’ve got your back.
Your financial picture includes everything from your pre-tax household income, student loans or debts you might have and your credit score. Once you have an idea of what these are, you can start creating your financial profile.
Step 1. Creating your financial profile
A good place to start when budgeting for a new home is to get a rough idea of the size and type of loan you can qualify for.
Step 2. Calculate other homeowner’s expenses
Your monthly mortgage payment isn’t the only expense you’ll be responsible for when owning a home. Don’t forget about other costly expenses like HOA fees and insurance!
Step 3. Factor in other recurring & upcoming expenses
Beyond debts and your credit report, your mortgage provider will need a clear understanding of your financial obligations and personal goals to help you get an accurate estimate of what you can afford.
Once you’ve gone through these three steps, you will have the financial information you need to create your borrower profile. Need help or more information? That’s what our dedicated mortgage advisors are here for!
Ready to make your budget your best friend? Download our FREE guide and start building your financial profile today.