21 - How To Budget for Buying A House

First Time Home Buyers - How To Buy a Home

We'll be discussing the age-old question, how much should we spend on a home? With everyone's situation being unique, it's important to talk about the fundamentals of creating a budget and give you some overall guidance that you can use to come up with your ideal budget.

Tools & Resources:

• Show Notes & Article: https://fthbpros.com/first-time-home-buyer/how-to-budget-for-buying-a-house/
• Home Affordability Calculator
• Mortgage Calculator
• Home Budget - Google Sheet

Starting with the two things that you need to concern yourself with – what price home will your budget allow for, and what price home should your budget allow for? The main difference is what will a lender approve you for and what you're comfortable with spending. We'll dive into how lenders calculate your debt-to-income ratio (DTI) to know the maximum you can be approved for.

However, is that maximum amount realistic? We'll walk you through the general rule of spending not more than 25% of your pre-tax income on a mortgage payment.

We'll also be covering the three main sections that will help you understand what you should spend on a home:

1. Creating a budget and understanding how much you actually spend monthly
2. Looking at both your budget and the amount a lender will approve you for
3. Short-term and long-term planning, considering your career, living expenses, rent increases, and housing expenses.

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Contact Information:
Philip Mastroianni – Loan Officer & Real Estate Agent
[phone]
[email protected]
NMLS# 2141541
DRE# 02141890
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[email protected]
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Legacy Homes Realty