4 Budgeting Tips for You When Buying a Home

By
Real Estate Agent with John Roberts Realty

4 Budgeting Tips for You When Buying a Home

Many think homeownership costs will get in the way of living the type of life they are accustomed to, whether that includes dining out at new restaurants, shopping or traveling around the world. Buying a new home doesn't mean you will have to give up all you have gotten used to. The key to home ownership means sticking to a budget, knowing what you can afford and managing extra costs wisely. If this is something you really want with a little bit of patience and budgeting your dream can become a reality. Here are 4 tips that will make your dream become a reality:

1. Practice a home ownership budget first

Before buying, encourage your clients to estimate any new costs. If they expect their total budget to increase as owners, they can try setting that money aside into a savings account to help paint a realistic picture of what it will be like to live with a little less discretionary income—can they still maintain what they’re used to, or will they need to find places to trim from their everyday spending?

2. Manage credit & keep on top of debt payments

Typically, the better credit score a client has, the better the likelihood of a more favorable interest rate, which means lower monthly payments.

3. Don’t spend the entire preapproval amount 

Getting preapproved is a key step in the home buying process. But people are often preapproved for a higher amount than they’ve budgeted for. Advise clients that they don’t need to spend their entire preapproval amount. Staying under the approved limit means they’ll have more money on hand after purchasing to still live comfortably.

4. Understand the importance of insurance

Most lenders will require buyers to purchase homeowners insurance. While shopping around for a good deal or saving money by bundling policies can keep homeownership costs down, it’s important for clients to consider the quality of the coverage. In case something does go wrong, the insurance could cover major costs instead of sinking your client’s budget or depleting emergency savings.

 

I love real estate there is no greater feeling than seeing your customer's happy!!!

 

Please contact me if you have any questions or need any additional real estate buying or selling information I'd be happy to assist.

  

Remember if you have any questions about First Time Home Buyers Programs or any Real Estate matter I'm just a phone call or email away. I'm waiting to hear from you!

Comments (26)

Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Hi Pat- I too love your tips especially #1.  So many times first time buyers may not realize all of the expenses they will face with home ownership. 

May 24, 2021 04:44 PM
Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

It is always great advice whenever looking to buy a home to establish a budget first and foremost. You have to know all of your expenses.

May 27, 2021 01:09 PM
Pat Champion
John Roberts Realty - Eustis, FL
Call the "CHAMPION" for all your real estate needs

Kathy,

You are right, I always tell my buyers to make sure they have some money put away you never know what will come up. Thanks for stopping by. I hope you have a Happy Memorial Day weekend.

May 28, 2021 09:40 AM
Pat Champion
John Roberts Realty - Eustis, FL
Call the "CHAMPION" for all your real estate needs

Troy,

Great advice. Thanks for stopping by. I hope you have a Happy Memorial Day weekend.

May 28, 2021 09:40 AM
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Pat. All buyers should consider your post required reading. Thanks! Enjoy your day.

May 29, 2021 05:27 AM
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good moring Pat - this is excellent advice and very well written.  Buyers need to know not to get in over their heads.

May 29, 2021 05:32 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Pat, this is a great list to help those first-time buyers build their bank account.  Staying away from Starbucks will help too!

May 29, 2021 10:21 AM
Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

May 29, 2021 07:26 PM
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hello Pat - painting a realistic picture of home ownership can reap many rewards for any potential property owner.  

May 30, 2021 04:11 AM
Debb Janes EcoBroker and Bernie Stea JD
ViewHomes of Clark County - Nature As Neighbors - Camas, WA
REALTORS® in Clark County, WA

I really appreciate your number one. I also think it's a good rule for retirement planning. Try living on what retirement income alone would give you, if it's doable and comfortable, maybe it's time to move on from regular employment. 

May 30, 2021 08:11 AM
Chris Ann Cleland
Long and Foster REALTORS®, Gainesville, VA - Bristow, VA
Associate Broker, Bristow, VA

I love how you advise potential buyers to practice a home ownership budget before buying a home.  That's really great.

May 30, 2021 10:40 AM
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
& Host of Postcards From Success Podcast

Tip #1 is an excellent point Pat Champion ; one I will incorporate more with my buyers.

May 30, 2021 11:13 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Great tips, Pat! I especially like #1.

I always talk with buyers about their actual personal vs. what the bank says they can afford and to look closely at what they atcually spend their money on, or want to, each month.

Jeff

May 30, 2021 11:26 AM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good morning Pat Champion ,

I'm so glad this was featured in Kathy Streib's "Ah-ha" moments for the week! Love the tips and #1 is a real winner!! Great advice.

May 31, 2021 09:35 AM
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

It is so important for people to resist spending every dollar the lender says they are able to spend. Lenders have no clue about the other expenses that people feel are vital to their happiness.

Wise agent say "Spend less." Greedy agents push people to spend all they can - and then some.

May 31, 2021 10:18 AM
Pat Champion
John Roberts Realty - Eustis, FL
Call the "CHAMPION" for all your real estate needs

Kathy, thank for featuring this post in posts just for you. I hope you have a great weekend!

Jun 04, 2021 09:10 AM
Pat Champion
John Roberts Realty - Eustis, FL
Call the "CHAMPION" for all your real estate needs

I wanted to thank everyone for stopping by. I hope you all have a great weekend!

Jun 04, 2021 09:11 AM
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

This is excellent advice to share.

Take care, be safe and have a productive month.

Jun 04, 2021 10:11 AM
Pat Champion
John Roberts Realty - Eustis, FL
Call the "CHAMPION" for all your real estate needs

Roy, I wish you the same. Thanks for stopping by. I hope you have a great weekend.

Jun 04, 2021 02:42 PM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Pat, I was so lucky to have two young couples (first-timers) that saved over $100K and was able to close in June.   

Jul 02, 2021 06:56 AM