Don't Skip This Step When Buying Your First Home

It's probably the least exciting topic of the homebuying process. Creating or reviewing a budget. However, it is likely the most important step when buying your home (especially your first). *If you have a minute, I can explain why*.

1. Understanding Your Financial Situation - Why It's Important

Before you start house hunting, it’s vital to understand the monthly inflow & outflow of your income & expenses. Put simply; you'll want to determine how much money is left over after you subtract the total of your monthly payments from the total of your monthly income. This will help you determine a house payment you're comfortable with. From there, you can work on getting pre-qualified & house hunt away! 

2. Avoiding Overstretching Your Finances

One of the most significant pitfalls in home buying is overextending your budget. There's a number of reasons this can happen. Quite frankly, it’s easy to fall in love with a property and stretch your finances to secure it. However, this can lead to financial strain in the long run. Get back to your comfort zone in regards to the planned house payment from your budget. Your future self will likely thank you.

3. Plan For Costs Associated With Your Home Purchase

Buying a home involves more than just the mortgage payment. Here is where meeting with a licensed mortgage loan originator can help you with (programs, down payment etc) 

Interested in finding out more? Take a minute to schedule a time to meet with me.

3 Tips for Sticking to Your Budget

1. Use Budgeting Tools: Consider apps or spreadsheets to track your income and expenses. 
2. Be Transparent: Absolutely make sure that you're accounting for any hobbies & guilty pleasures (just group those items in the miscellaneous category in your budget). A house payment should not detract you from doing what you enjoy. It's important to be realistic. 
3. Stay Disciplined: Remind yourself of your financial goals. When tempted to overspend, think about the long-term benefits of sticking to your budget.

Remember, a budget is a financial tool— but it’s also your roadmap to achieving homeownership with an absence of putting yourself under financial strain. So, take the time to plan, stick to your budget, and enjoy the experience of your homeownership process!