Determining a Home within Your Budget

Home buying mandates a series of small decisions. Do I live in the city or in the suburbs? How many bedrooms do I want to have? How far is the location from my work environment?

All of these decisions cumulate in one large one: Where will I live?

For many prospective home buyers, the first step is to determine your budget. To calculate what type of home you can afford, it's crucial to first know your monthly income. Secondly, determine your total monthly expenses, including items such as credit card bills, insurance premiums, and car payments.

When synthesizing this information, consider reaching out to a financial professional. For example, a housing counselor can help you determine what you can reasonably afford. By keeping your payments within an affordable budget, you can avoid potential financial hurdles, such as foreclosure.

Mortgage lenders will tell you the amount of the loan they're willing to offer you. This takes your ability to repay the loan into consideration. That said, it's probably safe to say that you comprehend your socioeconomic situation better than anyone, so invest thorough thought into one of the biggest decisions you'll ever make.

For more information on the finances of home buying, contact Michna Law Group by phone at 847.446.4600 or by email at BJM@MichnaLaw.com.