I Hate Budgeting! But Its Wise That I Do!

When you meet with loan officers, they’ll review your initial application, and calculate your income and revolving liabilities. They do this to come up with a number that indicates how much house you can afford. In other words, how much house you qualify to buy. That number is your MAXIMUM limit. We strongly suggest that, on reviewing and analyzing your Budget Spreadsheet, you should be prepared to tell the loan officer the monthly mortgage payment that you’re comfortable with! It’s dangerous to borrow at your maximum limit because it can force you to live from paycheck to paycheck or, worse yet, cause you to get behind on your bills. Should something unexpected happen in your financial life and you can’t make your house payment, you’ll be in a very bad position. When you buy property, it’s always best to prepare for the unexpected: Have a back-up plan and a little nest egg set aside for emergencies, and do not borrow at your maximum limit! Hopefully, you’re not in the same predicament as our example couple.

Lay out everything on this or a similar spreadsheet so you’ll understand how your income arrives and leaves your household. Once you have accounted for everything, take the time to discuss what expenses you can look to reduce or just do without in order to own your home.  The spreadsheet is set up for you to do as many what if scenarios as you like. Taking a serious and realistic look at this information will motivate you to improve your financial well-being.