How to Budget for Homeownership

Dated: 02/01/2020

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I often get asked by first time buyers whether I think they can afford a home?  I want to believe that every person has the ability to become a homeowner.  With that goal in mind, it’s always best to know your budget, your monthly income and expenses.

1)  Start buy adding up every source of income you receive on a monthly basis   Account for your paycheck and your spouses check if you are married.  Other sources of income could be from retirement pay, freelance work, royalties, etc..  You want to write down all sources of income.

2)  Write down your monthly expenses – You want to include all monthly expenses from utilities, clothing, food, transportation, medical, dining, recreation, and utilities.

For example:

2 Paychecks per month =             $5000

Total Expenses =                         $3500

Amount left for housing =            $1500

3)  You want to have a little extra left over for house maintenance costs.  Include a emergency fund in your budget.  In my example, let’s save $250 for emergencies and allow $1250 for housing.  This will ensure you have a little bit left over for emergencies.

4)  Try to keep your mortgage payment not more than 25% of your monthly take home pay.

5)  Lastly, hire a reputable realtor and lender that will get you the best deal on a home and the best rate on a mortgage.

Happy house hunting!

(210)389-4715

Janet.sahouses.com

Janet Wingrove has been a licensed realtor in the State of Texas since 2007 and has been selling real estate in San Antonio ever since.  "My #1 goal is to help you achieve your real estate dreams!" - Janet

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