How Much Home Should You Buy?

Buying a home is one of the biggest purchases in your life — knowing exactly how much home to purchase can be complicated. To choose the right home, you have to try to see as far into the future as possible and predict:

How long you will live in the home?
How large your family will grow?
What activities will you have, what are the space requirements?
Where do you want to live — near work, near family, near a certain school district?

The trick to buying a home is getting as much as you can on your wish list without going over your budget. You don’t want to max out your spending ability so you can no longer afford anything but your mortgage payment.

Before you consider buying a home, it’s a good idea to accumulate three to six months of external expenses saved, in addition to your down payment. Some questions to consider:

Can I make at least a 10% (preferably a 20%) down payment?
Can I keep house payments at or below 25% of my monthly take-home pay?
Can I afford to take out a 15-year or 30-year loan?
Am I working closely with a real estate agent I can trust?

When you’re ready to see how much home you can afford, call your Mortgage Lender with Wisconsin Mortgage Corporation. A trusted source in your buying process, Wisconsin Mortgage Corporation can help you finance your dream home.

Ready to start the search for your next home? Contact a Shorewest agent to help you start the process.

Categories: Mortgage