The Ultimate Guide to Buying Your Home

Before you even start looking at homes, it’s crucial to set a realistic budget. Think about how much you can afford, factoring in not just the mortgage, but also property taxes, insurance, maintenance, HOA fees (if any) and utilities. Here’s a rule of thumb:

• • Your monthly mortgage payment should generally not exceed 28% of your gross monthly income.
• • Your total monthly debt payments, including housing often should not exceed 36% of your gross monthly income.
• • Don’t finance new car and don’t max out your credit cards before you take a mortgage.
• • Don’t forget about closing costs, which can range from 2-5% of the loan amount.
• • Don’t max out your budget - leave room for surprises.

Having a clear idea of your budget will help you avoid wasting time looking at homes that are out of your price range.