Scrutinize your monthly Spending

Unless you have generous parent, grandparents or in-laws. If you want to buy a home you need to save money. After you buy your first home, your total monthly expenditure will surely increase. The first step is to assess your affordability analyze your monthly spending.

Take a look at this chart

Item $
Income
Rent
Utilities – gas, electricity, trash, H2O
Phone/ Cable
Furniture
Home repair/ maintenance
Supermarket
Takeout/ restaurant
Gas
Car maintenance & repair
state registration fees
Parking/tolls/public transportation
clothing – shopping for appearance
dry cleaning/ haircut/ makeup etc
credit card debt
auto loan
student loan
Entertainment / vacations/gifts
health club / professional clubs/ hobbies
pets
medical bills – doctors / dental / vision / pharmacy
Insurance – auto/ health / life
Education – books/courses / office supplies
Kids? child support/ day care / toys etc
charitable donation
Other …

Take a minute to analyze, don’t make the largest financial decision over few days. As a realtor, I want my clients to build wealth over time. I don’t recommend you taking a huge financial debt above what you can afford. Save money (20% down payment + 5% of purchase price for closing & home improvement cost) before you start searching for homes.

Own the house don’t let the house own you”.

Dave Ramsey

Contact me for more information: dvp.realtor@gmail.com