How Much Home Can You Afford?

Have you ever wondered how much home you can actually afford? Buying the perfect home doesn’t mean you can ignore your budget.

Now that’s every room in this new house does it have a bathroom is the master upstairs are down how big is the yard oh all the questions people ask but they’re missing the most important question yeah that’s what this video blog is all about so yes home buying it can be very exciting when you’re looking at you’re dreaming of oh the perfect house where everything

Is you know you just want everything so great but listen those are some great questions to ask sure but the biggest question you need to ask is how much home can i afford that is key which means you need to do a budget and figure out okay when you’re home buying your mortgage payment should be no more than 25% of your take-home pay and so what that’s going to do

Is that is going to really direct and instruct you on what kind of house you can get your budgets gonna instruct you not the loan officer dun dun dun so when you go to apply for a mortgage you may get an awesome amount of money here they say hey will lend you all this money but i don’t want you to look at that amount and say oh perfect this is the house we can

Afford this money that this loan office represented okay we’ll just take that and we’ll go and get a house no no your budget needs to dictate that and it’s so hard to be content you guys in a home i totally get that but a lot of people think so short-term when they’re buying a house they don’t think about the monthly payment they’re not thinking about paying it

See also  How to Guide for Buying a House in 2023! [Beginner]

Off early all of those questions need to be in front of your minds and so for some of you yeah maybe it’s getting a smaller house and saying hey we don’t need that much of a house and for some of you home buying doesn’t even need to be in the picture renting is okay people renting is okay like the stigma of like oh i’m renting and i hear so many girls especially

After they get married i just want to make a home i just want this to be my home and i get that it’s kind of that like nesting feel but listen if you’re not financially ready to buy a house that’s okay and especially if your expectations of buying a home were like what your parents house is remember it took your parents 30 years to get in the house they’re living

In and some of your parents are still living in the house 30 years ago bravo cuz it’s probably paid off okay so let’s take some good heat examples from people that are doing this process well of home buy remember when you’re going to apply for a mortgage the amount of my they give you you may not need it all so don’t just depend upon what the loan officer is gonna

Give you let your budget dictate that and side note a lot of mortgage brokers they get paid on commission which is not bad but if you get a really sleazy one then they’re gonna try to upsell you just so that they can get paid more so remember that and then for some of you out there you don’t need to buy a home you just need to rent for a little bit and renting is

See also  How to retire EARLY in India? | What is F.I.R.E ? | Retirement Planning | Akshat Shrivastava

Okay until you’re ready so there’s so much in this topic homeboy i mean we can cover everything except for decorating some horrible decorating so we’ll not be talking about that but all the things around finances and buying a home is in my book love your life not theirs i’ve dedicated a whole chapter to this topic because it is so key and it’s such a huge part of

Your life right i mean for many of us it’s the largest purchase we’re ever gonna make in our lifetime so you want to take it really seriously so make sure to check out my book live your life not theirs you can click the link below for that and if you’re in the process of home buying okay so exciting i wish i’d confetti because this really is fun i just want you to

Be prepared hey guys thanks so much for watching my video and reading my book oh you haven’t read my book well make sure you check it out your life out there’s a head subscribe to my youtube channel make sure to get some really great videos about money and life

Transcribed from video
How Much Home Can You Afford? By The Rachel Cruze Show