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
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