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Monthly Budget Planner

If you are on the path to home ownership, using the Monthly Budget Worksheet will help you determine your current expenses and plan for the costs of purchasing a home. As a certified Freddie Mac Credit Counselor I use this budget in my credit workshops.  Click on the Freddie Mac Monthly Worksheet link below to get started.  

https://myhome.freddiemac.com/docs/monthly_budget.pdf

When it comes to homebuying, everyone knows the critical rule: Don't purchase more house than you can afford. But what constitutes "affordable" will differ from one buyer to the next. As of September 2019, the average price for a new home was nearly $363,000, meaning some folks pay a lot more than that, and others a lot less. Wherever you fall on the spectrum, it's likely that a home will amount to one of the largest single purchases you will ever make.

Figuring out the sweet spot of affordability requires more than getting a preapproval letter from a mortgage lender, however. First-time buyers tend to shop on the amount a lender is willing to approve them for, not taking into account other expenses. That sets you up for financial hardship and even a potential foreclosure if you can't afford the monthly payment.

Setting a homebuying budget involves more than seeing if you can swing a mortgage payment. To determine if a home is affordable, calculate your entire debt-to-income ratio: all your monthly expenses divided by your gross income. Homeownership involves a variety of ongoing costs, including homeowners' insurance, property taxes, and repair/upkeep expenses. Since most people cannot afford a 20% down payment, plan to pay mortgage insurance as part of your mortgage.  

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Margeau Gilbert
Exit Right Realty
8730-16 Cherry Lane
Laurel, MD 20707
Direct: 240-462-1955
Office: 301-362-4500

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Margeau Gilbert | 240-462-1955 | Contact Me
Exit Right Realty - 8730-16 Cherry Lane - Laurel, MD 20707
Office: 301-362-4500
Copyright © 2018, All Rights Reserved

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