Buying your first home is an exciting milestone, but it also comes with a significant financial commitment. Understanding how to calculate your home budget is crucial to ensure you find the right home without compromising your financial stability. For the next four weeks, I will walk you through the steps to determine your affordable home budget.
Step 1: Assess Your Current Finances
Before you dive into the world of home buying, it’s essential to have a clear understanding of your current financial situation. Start by doing the MATH!
Sit down with yourself or we can do it together so we have a clear idea of your monthly numbers and how much house you can afford. The first thing to determine are these three buckets:
A. Income: Calculate your monthly take-home pay. Be sure to include all sources of income, such as your salary, rental income, or any side gigs.
B. Expenses: Create a comprehensive list of your monthly expenses. Including everything from utilities and groceries to entertainment and transportation costs. This will give you a realistic view of your spending habits.
C. Debts: List all your outstanding debts, including credit card balances, student loans, and car loans. Knowing your total debt amount is crucial in determining your budget.
Remember that your first home might not be your forever home. It’s essential to strike a balance between finding a comfortable home within your budget and planning for your future.
Calculating your home budget is a critical first step in the home-buying process. It empowers you to make informed decisions, ensuring that your homeownership journey begins on a solid financial foundation.
If you’re ready to start your home search, I can help you get started on your home-buying journey. Just email me at Laura@rRootingFoundations.com and we can start doing the math and crunching numbers together!
As always, I am your go-to resource for all things real estate.
I'm Laura and I love helping first time home buyers make their first time home more affordable.
Let me know how I can help you make your real estate dreams come true. Let's chat!
1230 Peachtree St NE
Atlanta, GA 30309
Steps To Buy
schedule your free consultation