How to Find Affordable Housing That’s Within Your Budget
If you’re in the market for a home – listen up!
Starter home prices have increased nearly 10 percent compared to last year.
However, don’t lose hope. That doesn’t mean the perfect home isn’t out there for you.
We’re going to help by providing some tips on how to find affordable housing so you don’t have to take out a ridiculous mortgage.
With these tips, you’ll be able to find a nice, affordable home in no time!
Add up All Your Income
How are you supposed to know how much you can spend? Add up every source of income that you and your spouse/partner receive each month.
Does one of you make more than the other?
Is there a charity that you donate to every month? You might want to limit which ones you donate to.
What’s Your Household Expenses?
Write down every place that your money goes to each month.
How much are you paying in utilities? Internet? Cable?
How much are you spending on groceries? You also have to factor in your gas expenses if you drive to and from work every day.
Everything adds up and you’re probably still going to want to keep the Internet and cable providers you have.
Grow Your Budget
Before you commit to a mortgage, think ahead to things that might increase your living expenses in the near future.
Do you plan on having children? For a middle-income family, a child adds over $14,000 in annual expenses.
Heck, even getting a dog costs money. People spend about $1,600 a year taking care of their four-legged friend.
Look in Affordable Neighborhoods
Buying your first home is very rewarding. It’s an amazing accomplishment knowing you’ve worked hard for something YOU rightfully own.
When it comes to how to find affordable housing, look in the right neighborhoods. Don’t look where you can’t afford.
Look for up-and-coming neighborhoods or consider buying a smaller home. You don’t have to live in it forever.
Before you decide “that’s the one,” speak with a lender about how much they’re willing to lend you. Even if you’re afraid of having bad credit, that’s ok, talk to the lender to see what your options are.
Lenders will start the qualifying process by looking at your income and debt. This will include any auto loans, students loans, or credit cards you have.
Have a Nice down Payment
It’s simple – the more money you put down, the less the mortgage payment is.
The expected down payment for a home is 20 percent. If you’re able to put that much down, you’ll increase your chances of getting approved for a mortgage.
How to Find Affordable Housing
With these tips on how to find affordable housing, you shouldn’t have any problems! We know you’ll have a lot of thinking and planning to do.
Buying your first home shouldn’t be scary, which is why FHA Loan Search is here to help guide you every step of the way. We provide a free mortgage calculator, home credit and loan information, as well as mortgage tips.
So contact us today and let’s get to hunting!
He is an experienced presenter on affordable housing topics including FHA, VA, and conventional home loan programs.
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