Buying a Home – What Can I Afford?

“Buying a home is one of the most important personal decisions you’ll ever make. There’s a lot to consider including the amount you’ll borrow, how much you’ll put down and what monthly payment you’re comfortable with. As mortgage professionals, we can help you understand how these choices relate to the different types of loans that are available. You can even use our mortgage calculators to develop a better understanding. Your first step, however, should be to consult your financial advisor. When you’re shopping for a new house, it’s easy to get lost in the moment and out-of-touch with your financial reality. An informed, unbiased opinion of where you stand is a great place to start.

"It’s also common for first-time buyers to overlook the hidden costs of owning a home. If you’re moving from an apartment, you’ll likely need to purchase a lawnmower, washer, dryer, refrigerator, stove and more furniture to outfit your newfound space. Often you can negotiate with the seller that major appliances remain in the home, but chances are you’ll be shopping right away for at least some of these items, if not more. And when something breaks, there’s no landlord to call – if you don’t already have one, invest now in a socket wrench set!

"New bills can also come as a surprise. As a homeowner, you’re responsible for everything – gas, electric, water, phone, cable, garbage and sewer. Individually they’re not much to look at (or maybe they are, depending on your habits!). Together they can make a big dent in your monthly budget.

"Finally, put off home improvement projects for at least six months. New homeowners (especially those buying older houses) are often eager to make cosmetic changes where none are truly necessary. Take time to ease into your new budget. Cut back on movies and restaurant meals until you have a good feel for your new level of disposable funds. In the meantime, make remodeling plans – even visit the local hardware store – but plan accordingly and only make purchases when you’re truly ready. Getting off to a good start on your mortgage payments is the best decision you can make.

"For more help, use our budget calculators to find out how owning your own home can impact your bank account. Most importantly, talk to those who have done it – the best advice comes from friends and family.”