Can You Afford to Buy a Home? Part Two: The Monthly Costs

If you’ve decided that home ownership fits your lifestyle, and you know how much you need to cover the upfront costs, the next thing you’ll need to know is whether your budget can actually support the ongoing costs of owning a home. I can hear you right now going “when does it all ennnd“.

whendoesitend

I promise though, the pain of calculating all of these costs early on is so much easier to bear than the later realization that you’re house-poor because you didn’t factor in all of the ongoing costs. Let’s do this together, shall we? Continue reading “Can You Afford to Buy a Home? Part Two: The Monthly Costs”

Can You Afford to Buy a Home? Part One: The Upfront Costs

So you’ve considered it and decided that buying a home fits with the lifestyle that you want. But can you afford it?

Before you start seriously looking, make sure you have an accurate budget so you have a realistic idea of what your current monthly expenses look like. Once you have that as a starting point, you are ready to develop a budget for your home purchase.

When preparing that budget, don’t forget that there are also a number of upfront costs involved with purchasing a home that go beyond the down payment.

Typically, the rule of thumb is to estimate between 1.5% to 4% of the purchase price of the home for your closing costs, but be sure to look at each upfront cost and do a bit of digging to figure out just how much you can expect to fork over.

Continue reading “Can You Afford to Buy a Home? Part One: The Upfront Costs”