3 Steps to Buying a Home That Won’t Bust Your Budget

Best Rockwall Realtors Sarah Naylor November 21, 2022

We understand how overwhelming it can be to find a new home to buy—should you get a cottage or a villa? A move-in ready or a fixer-upper? Should you move to the country or stay in the city? There are a lot of things that you need to consider when making this big purchase—it’s going to stick with you for years to come.

One of the main questions that you need to ask yourself is how much you can afford. From determining your income to hiring a professional realtor, here’s how you can buy a home within your budget:

Add up all your income

You need to know how much money you spend every month to be able to create a proper budget for your home. Take some time out of your day to sit down and add up all your income for the month. Make sure to include the income of everyone else who is going to be sharing the expenses.

Make a list of your monthly expenses

Once you’re done determining all your sources of income, it’s time to figure out where your money is going. Write down all your expenses, including savings, current rent, utilities, food, health, transportation, and recreation. If you have any additional categories, feel free to add them! Everyone’s budget will look different, so don’t get too caught up on what you might find on the internet.

Calculate the costs of home ownership

Your housing payment shouldn’t be more than 25% of your take-home pay every month, or you’ll end up house poor. This 25% includes the homeowner’s insurance, property taxes, interest, and principal. You also need to consider the HOA (homeowner’s association) fees if it’s part of one.

If you want to get the best out of your savings, look into getting a 15-year mortgage at a fixed rate and figure out how much house you can afford at that price.

Get in touch with a residential real estate agent in Rockwall

Naylor KW is a high-quality residential realtor that will help you find your dream home in Rockwall at an affordable price! Our trusted real estate services will simplify the home-buying process and will ensure that you get the best bang for your buck. Trying to do everything by yourself can get confusing and messy—let the professionals handle it instead!

Contact us for more information!