Always keep in mind if you buy too much house you will be drained chp_currency_1financially. Be honest with yourself about what you spend and what you can afford for a home. Simply take a look at the number of home foreclosures nationwide this week to give you the incentive to find your comfort zone of monthly repayment.

Before you decide how much you can afford in monthly mortgage payments, calculate your expenses. The following itemized list could help organize your thoughts. Sometimes you don’t realize how many financial obligations you have until you see them on paper.

·       Loans – car, student, etc.

·       Insurance – home, car, life, etc.

·       Credit Cards

·       Utilities

·       Property Taxes (based on cost of the home you are interested in, or your own home — for questions, call your local tax collector since rates vary)

·       Food and Entertainment

·       Kids’ School

·       Retirement Accounts

·       Car Payment

·       Gifts

·       Doctors

·       Vacations

·       Charitable Contributions

Consider preparing a similar monthly expenses checklist along with all associated paperwork to get pre-approved for a mortgage amount. It will also help to keep you in line if you fall in love with a home priced too far out of your pre-approved range. If you have any questions about buying your first home contact Eddie Perez at (201) 344-2886.

Explore posts in the same categories: First Time Buyer

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