Get Real With Your Budget

The first thing people do when they want to buy a house is they run straight to Zillow or realtor or Trulia with out a known budget or idea of what they can actually afford.

They get caught up in the glamor and idea of owning a home but they are blind to the real details that go into the process. You actually have to sit and really look at what your debt is in comparison with your income. Typically Loan officers would prefer a Debt to income ratio of 36% . This means that your existing debt cannot exceed 36% of way your income is.

Just like rent a mortgage is considered an added expense or debt. Which means that when choosing a home you should consider what an average monthly payment will be ! This would include costs for insurance and tax payments and for those that are not putting 20% down on the house you will also have a PMI payment ( Proivate Mortgage Insurance)

i highly I encourage you to do your own calculations on what a projected monthly payment will be on the home first and see if it can fit in your budget! you can also speak with a consultant like myself to see if a certain budget makes sense!