How to Start Creating a Home-Buying Budget

Posted by Debbie Drummond on Monday, July 15th, 2019 at 9:38am.

Start to a Home-buying BudgetIt pays to not get more home than can be reasonably afforded. A home-buying budget can help create a financial cushion when first purchasing a home, making it easier to make regular mortgage payments and upgrades to a home. Know how to get started on a realistic home-buying budget today.

For informational purposes only. Always consult with a licensed mortgage professional before proceeding with any real estate transaction.

Review Current Expenses

When buying a home, the amount of debt to an applicant's income will be of interest to lenders. Before looking for a mortgage lender, review your credit history, credit card and banking statements over the last three months. Assess how much money generally goes towards expenses like:

  • Car or school loans;
  • Utilities;
  • Current rent or mortgage payments;
  • Entertainment;
  • Food; and
  • Transportation.

Too much debt can make it hard to be approved for a mortgage loan. Calculating the totals in these areas can provide a person with a better idea of how much money goes toward bills and how much remains after all is paid. A buyer can estimate areas where they may be able to reduce their expenditures to have more money to use toward a down payment. Easy areas to work on trimming include eating out, gifts and new clothing. Potential buyers may find ways to free up money for savings, an investment fund or closing costs.

Calculate New Expenses with a Home Purchase

Changing and new expenses should be a factor when mapping out a budget to buy a home. Some may be looking for properties further from their current place of employment, adding to commuting costs. A larger home may make an owner want to buy new furniture and décor. Some communities, like those associated with an HOA, can require the payment of dues.

Those new to owning a new Spanish Hills home may not have had to pay property taxes, homeowners insurance and other common recurring expenses. Speak with an agent or lender to get an idea of what to expect and how much to set aside to cover such bills. It becomes easier to cover these costs with a little planning.

Assess Your Ability to Purchase

A review of current and potential expenses can help when deciding whether it is the right time to buy. There are those who may want to wait as they improve their credit or pay down debt before going to a lender. Applicants with excellent credit scores are often offered lower interest rates on a conventional mortgage loan.

For informational purposes only. Always consult with a licensed mortgage professional before proceeding with any real estate transaction.

Debbie Drummond  is a Full Time Realtor with over ten years experience in the Las Vegas Real Estate Market. She and her team of Real Estate Pros offer the highest level of service.  If you’re buying or selling a Las Vegas home, call (702)354-6900 or email They’ll be happy to assist you in your move.

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