Budgeting Your Way To Homeownership

Budgeting is a surefire way to secure your financial future, especially if you want to check off buying a home on your list. Planning and preparing a personal budget properly before purchasing a home will help you stick to what you can comfortably spend. Here are questions to ask yourself when budgeting for a home purchase:

Do you have good credit?

When you’re backed by strong credit, you’re more likely to secure a better mortgage rate than someone with bad credit who may not qualify for an affordable mortgage, or even a home at all. Build your credit from the start by paying all your bills on time and reducing balances to less than 30 percent of the credit limit.

How much can you spend every month?

Evaluate your current financial situation and determine how much you bring home from every paycheck. Then, list all your monthly household expenses, including 401(K) contributions and other savings. The financial rule of thumb is that you generally shouldn’t spend more than 30% of your income on housing expenses.

What are your plans for the immediate future?

Planning on starting a family or thinking about upgrading kitchen appliances? Make sure to properly allocate funds in your budget for additional expenses and emergencies. Setting aside additional cash will help you become better prepared for whatever comes your way, but remember, as you increase your savings, don’t forget to decrease and pay off your current debts!

What’s your down payment goal?

Saving at least 10 percent of the purchase price for a down payment on a home would be acceptable, but aim for 20 percent to help you save more money down the road. The more you pay upfront, the less your monthly mortgage repayments might be. Shop around for the right mortgage option and take advantage of special programs for first-time home buyers or service members that will require little to no down payment for qualified borrowers.

It’s always a good idea to know how much you could borrow, what your monthly mortgage payments might be, and how owning a home will fit into your personal budget. Start the home loan application process by getting a pre-approval with the knowledgeable Home Loan Experts at CU Network Services. They’ll walk you through your journey of buying a home or investment property that suits your needs. Call them at 529-4599 or visit their office at 715 S. King Street, Suite 100.

Locations Hawaii
Michael Marks
Sandwich Isles Realty
Kimo Smigielski, Broker-in-Charge
R, ABR, CRS, GRI, e-PRO
Hawaii Life Real Estate Brokers
Emily Garcia
Agent, REALTOR(A), RS-77391
Coldwell Banker
DAY-LUM Properties

Edith Crabb, RB-8195
Coldwell Banker
DAY-LUM Properties

Glenn Takase, RB-18547
Coldwell Banker
DAY-LUM Properties

Misti R. Tyrin, RS-75836
Coldwell Banker
DAY-LUM Properties

David L. Skeele, RB-12882
Kauai Landmark Realty
Phil Fudge, RB-18576
Claire Keaton, RS-73854
Coldwell Banker
DAY-LUM Properties

Shea Miyashiro, RS-64678
Coldwell Banker
DAY-LUM Properties

Atsuko Winston, RS-75899
Coldwell Banker
DAY-LUM Properties

Mark Skeele, RS-77005