Understanding the financial comfort zone is probably the most important aspect of the entire home buying experience. This step is where you will determine how much money you can afford to spend on your first dream home.
The first step to understanding your financial comfort zone is to create a budget. List everything from utilities, rent, insurance payments, car payments, to all miscellaneous expenses and subtract from your income. Once subtracted, you are left with a bottom-line net number. This number will give you an idea of how much you can afford to spend on a home.
Balance for housing is $2000
The next step is to put this into practice. Let’s say you can afford a $2000 mortgage payment every month and your current rent is $1000. You are going to take the remaining $1000 from the $2000 and put it into your savings for the next several months. By doing this, you are practicing paying a mortgage. This step will also give you a better idea of your financial comfort zone and what an affordable housing payment for you should be.
Martino Realty Group wants you to be in a position where you can comfortably pay your monthly mortgage. The home buying experience is different for every buyer. To get a customized, comprehensive consultation, contact us at firstname.lastname@example.org or follow us on social media at Martino Realty Group.