Creating a budget for a house can feel like a daunting task, but it’s not one you should put off.  Not budgeting and just “looking” can lead to stress or disappointment down the road.  And while it helps, getting a mortgage also requires you to know a little bit about your finances. How do you know what type of mortgage to take? Or how much the houses you are looking for should cost?

Don’t worry. We’ve got you covered. Here’s a quick and easy cheat sheet to get your budget for a house started!

Budget for a House (like a Pro!)

  • Your expenditure on a new home should never be more than 50% of your income. For example, if you bring in $4,000 a month, we recommend that you keep your monthly payment below $2,000 – that includes your mortgage payment plus premiums and insurance.
  • Figure out your monthly expenses currently. Keep track of your actual spending and make a plan to put what you’re comfortable with in savings.  Some simple ways to save more are cutting down on eating out or shopping. (We know it’s hard. But it’s worth it.)
  • Give your budget for a new home breathing room. As in… think through what your future could hold.  Kids?  College savings accounts?  Home repair costs?  For example, many first-time home buyers say they want to have kids.  If that’s the case within the first few years of buying your home, you’ll want to lay aside a percentage each month for childcare related expenses.  Anything like that could affect your future disposable income. Down the road, it’s based on your actual hopes and dreams. It’s not always about floor space.


Hopefully this helps!  If you’d like some savvy tips to save money while you budget for your house, check out our blog on managing your credit – we try to give you some easy ways to look as good as possible to a lender.  Feel free to call us anytime as you’re working on your budget for a house or mortgage process!  We’re a faith-based and family-friendly Christian mortgage lender.  So even if you’re struggling, we turn every option over until we find the right one for you.


Let’s start the New Year off right!



The Christian Mortgage Mom