What's Your Home Buying Budget?

     Buying a home in Colorado Springs requires money, just like anywhere else. The amount of money you want to spend on your new home depends on what type of property you want to purchase, the location and the competition in the market. Of course, you can always use your own cash to buy a house. However, most people depend on real estate finances if they cannot afford the full amount that they need. Getting real estate financial help is not as difficult as you may think. It certainly requires some due diligence and serious homework on your part, but calculating out your budget prior to home shopping is the best route to take. 

Know Your Budget Limit

     Once you have tracked your savings, income and expenses, you’ll have a clear picture of how much you can afford towards your monthly mortgage. When it comes to buying a house, which is a major purchase for most people, the primary goal in making a real estate budget is to get a clear picture of your family’s financial situation. This, in turn, will give you an idea of your different options for financing. In addition, creating a home buying budget can make you figure out where the necessary changes can be made, so you are able to make regular payments on time. If you had late payments on credit cards, bankruptcy or foreclosure in the past, the sooner you realize your options/budget the better. Your home buying budget is the most important aspect to buying your dream house. 

There are several different questions you need to ask yourself when determining your real estate budget:

-What is your family’s monthly income?

-What are your monthly bills?

-How much money goes towards your monthly insurance payments? Your kids expenses? Groceries? Gas?

-How much extra income are your storing/saving per month?

-What is the difference between your income and your outcome? (Extra cash)

-What are you and your family comfortable with paying per month?

     A direct path to obtaining financing is through loans offered by various lenders, such as banks and credit unions. First, analyze the property before real estate finances. If the property is in a desirable location, the property is your primary residence; you are getting 80 percent of the value as loan, using 20 percent as down payment. If you have excellent earning potential and credit rating, have only a few other monthly obligations, then you are in a good position and most preferred by lenders. You, as a borrower, would receive the best rate available from most lenders. A lot of this may not make sense until you speak to a professional real estate agent like Todd Hawker at Action TeamRealty, so don’t get too frustrated over all the information yet. Give Colorado Springs’ best real estate agents a call today!