Buying a home can seem like an overwhelming endeavor. It may be the most expensive and emotionally charged purchase you will make in your life, but with careful research and determination, you can make that dream home yours. TNT Homes & Realty will help you along your path toward home ownership, whether it is your first home or a better suited home.
Here are some of the things to consider when you are thinking about buying a home:
How long are you planning to stay there? If you expect to relocate soon, renting may be a better option.
How much home can you afford?
What’s on the market? If you can’t find a home you like, it’s probably not worth tying yourself to something you’re unhappy with. However, TNT Homes & Realty will do everything within our power to help you find that home that is perfect for you and your family.
To determine how much home you can afford, take a close look at your budget. Review your bank statements and spending habits for the last few months to figure out how much you are spending on everything from phone bills to streaming services to your weekly restaurant takeout. Our handy spending tracker can help you figure out where your money is going each month.
Once you have a better idea about your spending habits, determine how much you want to put aside toward a monthly home payment. This figure includes your principal, interest, tax and insurance payment, which add up to your monthly mortgage sum.
The FHA formula, used by many lenders, recommends using no more than 31 percent of your monthly income for a house payment. This figure will change based on your amount of debt. Buyers with no other debt may be able to budget up to 40 percent of their monthly income to housing. Remember that the balance of your budget is going to have to cover heat, water, electricity, routine home maintenance and food. Over all, your total debt-to-income ratio, including car payments and credit card bills, should never exceed 43 percent.
For example, if your annual gross income is $75,000, $6,250 would be your monthly gross income. That should leave you with $1,936, or 31 percent of your monthly gross income, to devote to your monthly mortgage, as long as your overall debt does not exceed $2,688 a month. Our mortgage calculator can help you determine what your monthly mortgage may be.
Remember that besides the mortgage, buying a home includes additional one-time payments that can quickly add up, including closing costs, legal fees and other expenses associated with buying, such as a home inspection. Don’t forget about moving expenses and home improvements.
Rest assured that you have nothing to worry about, because TNT homes & Realty will help you through this entire process. We make it so simple, you will wonder why you didn't make your move sooner!