How can you know if you are financially ready to become a homeowner?
This step guides you through some simple calculations to figure out your current financial situation, and the maximum home price that you should consider. How Much are You Spending Now?
The first thing you need to figure out is how much you are spending now.
To figure this out you’ll need to calculate:
- Your monthly household expenses
- Your monthly debt payment
Calculate Your Household Expenses
- What is your present household budget? How much are you now spending each month on household expenses?
- The Current Household Budget worksheet on the next page helps you take a realistic look at your current monthly expenses. Fill in all the figures that apply to you, and add them up.
Calculate Your Monthly Debt Payments
- Do you know how much debt you are carrying? You need this information to figure out whether you are financially ready for homeownership. If you decide to buy a home, mortgage lenders will ask for this information.