How Much House Can I Afford?
It’s the first question most new home buyers ask. We benefit greatly from the affordable cost of living in terms of housing in the Seneca and Wyandot County area. While you do want to get the most for your money, it may be better to ask, “How much should I buy?”
A new home brings independence and pride of ownership, but it also introduces a slew of non-mortgage expenses as well. By accounting for all the costs of home ownership, you will not only approach your investment realistically, but with freedom and peace of mind.
A classic guideline you’re probably familiar with is the twenty-five percent rule, meaning that your housing payment shouldn’t exceed a quarter of your income. But there are other factors to consider as well, like student loans, car payments, retirement savings, and the variable income that may result from owning a business or planning on having one spouse stay home to care for children. If you plan conservatively, you will feel less controlled by your bills and enjoy your new home even more.
Here are some other expenses to keep in mind when planning to buy a home:
Furnishings
Upgrading to a larger space often means more rooms to fill. Will you have to buy another table for a dining room? Couch and loveseat for a family room? Furnishings for a guest bedroom or finished basement? When budgeting for a down payment, allow for enough cushion money to help your new place feel like home.
Utilities
If you’ve lived in an apartment building that includes heat and/or electric bills in the rent, you haven’t had to budget for additional monthly expenses that can really add up, depending on the time of year and size of your prospective house. Do some research and get a reliable estimate of how much you will need to set aside for utilities.
Yard Expenses
You’ll finally be getting your first (or bigger) yard! Room to play, entertain, and garden in your own outdoor space is an important benefit of home ownership, but do keep costs in mind. Lawn mowers, weed whackers, patio furniture, weed and pest control, and landscaping/tree removal can be a shocker that first spring if you haven’t prepared for it.
Maintenance
When your new home needs a new furnace, water heater, or roof, will you be ready? Budgeting for home repair costs will save you from financial stress in future as you maintain a beautiful home that’s safe and enjoyable to live in while growing in value.
Time Considerations
Are you investing in a home for the long haul or relocating for just a couple of years? When buying a home, make sure you balance closing costs, moving costs, and other expenses with your mortgage so that your investment wins out in the end.
“So, How Much House Can I Afford?”
Once you’ve accounted for all the expenses involved with home ownership, it’s time to see how much house is best for your lifestyle and budget. Get the home of your dreams while staying financially secure! To calculate your mortgage, use our Mortgage Calculator.
When you’re ready to talk about buying a home in Sycamore, McCutchenville, New Riegel, Tiffin, or throughout Wyandot and Seneca Counties, turn to First National Bank of Sycamore for mortgage advice from area experts. Schedule an appointment with one of our lenders today!
