Budgeting
A well-planned budget is key to a successful home purchase. Take your time, be realistic, and don't hesitate to seek advice from financial professionals.
Step-by-Step Guide to Budgeting for a Home Purchase:
01
Assess your financial situation
- Calculate your monthly income
- List all current expenses and debts
- Determine your credit score
03
Save for a down payment
- Set a monthly savings goal
- Explore down payment assistance programs
05
Plan for ongoing home costs
​- Estimate monthly mortgage payments
- Budget for utilities and maintenance
- Set aside funds for repairs
07
Increase your income
- Look for ways to earn extra money
- Consider a side job or freelance work
- Ask for a raise or promotion at work
09
Get pre-approved for a mortgage
- Shop around for the best rates
- Understand different loan options
- Factor in the impact on your monthly budget
02
​Set a target home price range
- Research home prices in your area
- Use online affordability calculators
- Consider future income changes
04
Account for closing costs
​- Estimate 2-5% for closing costs
- Include appraisal and inspection fees
- Factor in property taxes and insurance
06
Reduce current expenses
- Identify areas to cut back on spending
- Pay down existing debts
- Avoid taking on new debts
08
Create an emergency fund
- Save 3-6 months of living expenses
- Keep this separate from your down payment savings
10
Regularly review your budget
- Track your progress towards savings goals
- Adjust your budget as needed
- Stay flexible and prepared for unexpected expenses