Cathy Bureau writes a very insightful post about budgeting for a home purchase.  Many buyers only consider how much a lender will lend you to buy the home, but beyond that, without considering a personal budget, home ownership and the costs associated with it might come as a bit of a shock.

Talking with prospective home buyers about the true cost of buying and maintaining a home will go a long way in truly servicing our buyers!

Thanks for the great post Cathy!

Via CATHY BUREAU, MBA, GREEN, EcoBroker, SFR San Antonio, TX Real Estate Broker (www.GreenHomeRealtyTexas.com):

The cost of home ownership is one of the most frequently asked questions by first time home buyers. The average real estate agent will tell you to contact their preferred mortgage lender, but Cathy Bureau will go beyond that.  This question has a direct and indirect facet so I will touch on both.

 

1.  How much will the lender let me borrow?

A mortgage lender will pre-qualify you based on your income, debt-to equity ratio, credit score, etc.  They will arrive at an answer of a monthly payment near 28% of your gross income subject to debt and credit score. They will provide and estimated GFE (Good Faith Estimate) - which breaks down the cost of acquiring the home such as appraisals, discount points, mortgage insurance, amount needed for down payment (Texas Housing Assistance may be applicable) etc.  That is a very important part of the process. But, it doesn't help you with the second facet.

 

2.  How will the home expenses effect my budget?

You need to know what the bank will lend to you, but you also need to understand the associated costs of home ownership and its effect  on your personal budget. There is a short-term and long-term aspect to this question.

The short-term has to do with your current expenditures and income based on the next 1-5 years. To assist you I have provided 2 worksheets that I can email to you if you register on Cathy Bureau's website. If you are within 12 months of purchasing a home Cathy will be happy to help you formulate a budget and get pre-approved for a home.

The long-term aspect has to do with the life changes that may occur beyond 5 years:  retirement, children, re-location, etc.  Because that is more complicated it would be wise to have an extended conversation with Cathy Bureau to better consult you in these matters.

Regardless - don't just think about the mortgage amount, the costs of that, and insurance. Think about the short-term and long-term facet of how these new expenses INCLUDING REPAIRS and MAINTENANCE will factor into your daily living and personal budget.

A simple Personal Budget will assist you analyze how you spend money and how the new expenses will impact your current lifestyle.

 

Personal Budget Spreadsheet

 

If you are the analytical type and/or really like to see things graphically, you might prefer this one:

 

Household Monthly Budget

 

Thanks for reading my blog! 

If you are thinking about buying, selling or know somebody who is, I would greatly appreciate allowing me the honor of helping you with your needs.  You can call, email, or text me - below.


CATHY BUREAU Broker/Owner

MBA, REALTOR, GREEN, SFR, ECOBROKER

(210) 378-2489

www.GreenHomeRealtyTexas.com

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Brenda Mullen – San Antonio Texas Real Estate Professional

San Antonio Texas Real Estate, Buying a home in San Antonio Texas, Selling a home in San Antonio Texas
 
Selling a San Antonio Texas area home involves many steps and having an experienced  San Antonio  Texas Real Estate Agent by your side will make the transaction run a lot smoother. I would love to be your San Antonio Texas Area Real Estate Professional! I assist both buyers and sellers in the San Antonio Texas area with either the purchase and or sale of residential real estate.
 
As an Accredited Buyer’s Agent, I have received special training to guide and educate you through the entire home buying process. From start to finish, I listen to your needs and desires in what you would like and take the information you give me to find you home.
 
As your San Antonio Texas listing agent I am well versed on the local San Antonio Texas area Real Estate Market. You can expect personalized service that includes a detailed consultation on how to best position your home to be competitive in today’s market with an in depth comparative market analysis, and advice on staging. I use the latest and most up-to-date marketing methods to get your home in front of as many buyers as possible. Being your San Antonio Texas area Realtor® not only involves just finding the home or selling the home, but being your guide, negotiator, advisor and advocate and making sure that your needs and goals are met. Being your San Antonio Texas area Realtor® is one of my truest passions, and “Helping You Find Home” is my number one priority.
 
 
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5 Comments on How Much Home Can I Afford? - Defining Your Personal Budget

NOV
21
2011
803,901 Points 20 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Very true.  People often forget about all the extra costs of home ownership.  Starting with a budget - and sticking with it - seems only logical.

5:19pm • #1
335,725 Points 23 Featured Posts Outside Blog Called Shot Master

Dear Brenda,

Thank you for being so kind and supportive. I really wanted to finish out the day at #10 and got stuck on max comments and I'm reserving my other blogs that I wrote Sunday for the rest of the week to avoid spending so much time here instead of with my family.

 I have been on the edge of #10 for a week and it has been driving me nuts! I did go over with all these re-blogs. Thank you very much. You are a true friend.

Sincerely,

 

Cathy Bureau

 


 

5:24pm • #2
648,311 Points 63 Featured Posts Localism Sponsor Outside Blog Called Shot Master

One of the things that buyers have a hard time wrapping their heads around is the payment issue.  What will it COST per month.  Right now it is cheaper to buy than to rent.  Considerably cheaper.  But people need to know what they will be paying out. They also need to understand that there are other expenses involved in ownership.

10:04pm • #3
762,343 Points 69 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

The lending process is so complex.  This is a great overview of what borrowers can expect when trying to qualify for a loan.  Good catch, Brenda.

10:59pm • #4
1,362,040 Points 244 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Brenda, those that max themselves out on what they can qualify to purchase, usually find them selves in trouble financially.

11:24pm • #5

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Schertz, TX

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