Your monthly housing budget is the amount you have to live, finance and heat your future home, after you have fulfilled all your other normal obligations. To do this, use current data that will not change when you are a new homeowner: your net household income, your debts (student loan, car loan, and so on) and your current living expenses (food, clothing, insurance, miscellaneous expenses, and so on).
The difference between your net household income and your total monthly expenses is y..
Analyzing your financial capacity
Before you start looking for a new home, you should conduct an analysis of your needs and an accurate evaluation of your financial capacity. You must establish a realistic budget that accounts for your lifestyle and your goals. The purpose of this exercise is to set a reasonable purchase price. This way, you can narrow down your search and avoid being tempted by real estate that is above your means.
The key element in this exercise is accuracy. Reme..
One of the main concerns of real estate buyers is mortgage financing. To determine the amount you will need to borrow, you have to know the purchase price of the property and the total expenses you will need to pay in cash. The summary of these calculations enables you to determine the amount of financing you need to purchase your home.
You have to plan for several cash expenses when buying a home. These costs must be estimated to determine the amount you need to borr..