Budgeting for buying a home

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    • David S.
      Participant

        I have been a renter my whole life but I am preparing to buy a house. I want to see the best way to go about budgeting for this. I want to get a rough estimate of the cost for buying vs renting and see what my options are. I don’t want to pay more than I do now for rent. Ideally, it stays the same, or I save money buying.

      • Alex R.
        Participant

          I was going through this prior to searching the market. It helps to work with an expert on the matter. My real estate agent as well as the bank I am getting the loan from broke all the numbers down for me. One of the easiest methods (though it is not bullet-proof) is to tack on another zero to your paycheck. If you get paid bi-weekly, go with that number. If you get paid weekly, add two weeks and then the 0. So if you are earning $1,500 every two weeks, you can safely afford a $150,000 house without struggling. If you are good with your money and have no longstanding debts, you can add a zero to your monthly earnings which would make that example $300,000 max.

          • Dan Charles
            Participant

              This is similar to what I have been told but not exactly the same. It is always best to aim low, not high. When it comes to bills and everything, rounding up is a good idea for this reason. I always recommend people do that.

          • Lilian Peterson
            Participant

              I was working with my own numbers and as it stands, I can’t afford much of anything. A lot of people can’t but this will not stop the bank from lending out money. So you have to be careful of that. They sometimes will process loans knowing the person won’t be able to ever pay it back and will profit off you when you have to let the house go.

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