Straight Talk on Buying Your Home

No Tweet; No Text; No Bull

Real estate is an instrument that can provide you your castle to live in and to enjoy, provide an investor a source of income, and provide long range equity growth.

Buying a piece of real estate property is a very important and serious purchase.  For the vast majority of us, purchasing our home is the most expensive purchase we ever make; therefore, we must use our math skills before we start the search for our 'castle'. 

Get a pad of paper, a sharpened pencil, all your monthly bills and expenses, and a pot of coffee or tea ready.

Now, let's start with the lists:
Expense List:
1.  Your monthly installment payments, such as car, furniture, child care/support, insurance, etc.
2.  Your entertainment expenses, such as movies, eating out, golfing, traveling, etc.
3.  Your food bill - that is how much you spend at the grocery store
4.  Your phone bills, cable T.V., etc.
5.  Your car expenses both gas and others (tires, service, repairs)
6.  Your utility bills, such as gas, electricity, and water
Income List:
1.  Your net pay each month
2.  All other incomes

Subtract your expenses from your income to determine how much money you have available for a house payment. 

House payments:  Those teaser ads on the internet stating you can buy a $150,000 home for $450 per month is VERY MISleading. 

A total mortgage payment involves principal and interest on the loan plus home owner's insurance and real estate taxes which will run you about $1,500 per month on a purchase of $150,000.

I want you to know your numbers so you can enjoy your home and have a happy life also!!!!!!!!!!!!!!!!!

Next blog, we will talk about the next step in buying your home.

Have a wonderful day.