For first time home owners, it can be intimidating to think about the expenses that come with owning your own condo or home.
Truthfully, there’s no way to fully prepare for taking on a mortgage. But, we think the tip below will help make the transition a little easier.
Once you’ve calculated if you have enough for a down payment and your monthly payments, here’s another helpful way to be prepared to take the leap into the “home owner’s club.”
Set up your next month’s budget as if you already owned the house.
Budget for what your mortgage payment would be for a house or condo. Include taxes, insurance, utilities, HOA fees (if applicable), and any other expense associated. If the amount is more than what you’re currently paying for all of those expenses, just take that extra cash and funnel it into your down payment or your emergency fund. This will help give you a feel for how tight your finances will be as well as boost your savings in the short term.
Tightening up your budget will help prep you emotionally as well. If you want a house but know the tighter budget will also limit your spending on, let’s say, travel or shopping, then this will help you experience some of those feelings as well.
If you’re in a rush to own a home, this method obviously won’t work for you. But for those of you who have been on the hunt for months now, this could be a great next step in preparing you for that leap.
If you’re interested in finding a home and are curious about how much you can afford or just have questions in general, we’d love to start a no-pressure, keep-it-real conversation.