How To Plan To Buy A House

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Denise Alicea

This blog was created by Denise in September 2008 to blog about writing, book reviews, and technology. Slowly, but surely this blog expanded to what it has become now, a central for book reviews of all kinds interviews, contests, and of course promotional venue for authors, etc

How To Plan To Buy A House

When most people are ready to take the big step of buying a house, they have to do a lot of research, find out what they can afford. So how do you take the first step on your home buying journey? Make a list of everything you spend money on each month. Based on your income after taxes, you can decide if your current spending is aligned with your saving goals. “Budgeting is the process of creating a plan to spend your money. This spending plan is called a budget. Creating this spending plan allows you to determine in advance whether you will have enough money to do the things you need to do or would like to do,” (My Money Coach, 2020).


Why is budgeting so important? It’s all about making a plan to make sure that you have money for the things you do need. Following this plan helps you stay out of debt and for those in debt, it may help them get out of it. Budgeting is about balancing your income with your expenses. Your monthly budget can give you a range of how much you can spend on a mortgage. Making a list and using it to help you find out what’s best and be sure, to be honest with what you make, what you owe, expenses, and what you can afford.

What can be helpful to create a budget and keep things on track? Technology has made this task really simple! There are many applications that help create a budget based on your account and tracks your expenses. “Personal-finance programs or websites like Quicken and offer built-in budgeting tools that can create your budget for you. Every time you make a deposit, write a check, pay a credit card bill or dispatch an electronic payment, you can assign it to a particular category, like “salary,” “clothing,” “groceries,” “childcare” or “health insurance.” Some programs will allow you to download your payments and deposits directly from the bank, rather than having to enter them by hand,” (CNN). I have used many apps that are on the go and are helpful, but there are many other online websites such as help you calculate your payments. Visit the website and input your information and it starts to give you the data you need to make the decision.

How much of your income should go to your house? According to CNBC, “You want to make sure that your monthly mortgage is no more than 28% of your gross monthly income,” says Reyes. So if you bring home $5,000 per month (before taxes), your monthly mortgage payment should be no more than $1,400.With a general budget, you want to have 50% of your income going toward utilities, mortgage and other essentials,” says Reyes. Keeping your mortgage payment under 30% of your income ensures you have plenty of room for the rest of your needs.”

The website makes learning about how much you can pay and afford easy! They have many calculators varying from monthly payment calculators, minimum income requirement, DTI, and home limit calculators. They also help you decide whether it’s right to rent or buy.   Who couldn’t want more?! I love when a company puts itself out there to make it a pleasant experience to something that can be a challenge for many. So, when you’re looking for financial advice, look no further than Mortgage Calculators!





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