Buying - Are You Ready to Buy?

Most people who rent the home in which they live could afford to buy a home with the right planning.

In order to know about your homebuying potential, it will be useful for you to take a look at your income, savings, monthly expenses, and debt. All of these are important factors in how much mortgage you can afford and also in how purchasing a home can affect your monthly budget.

Four Categories

Together the following four categories are a guide that will give you a better understanding of your financial situation. Print this page, and fill in the blanks for each of the categories listed.

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Review the Following Four Categories

3. Monthly expenses may increase

The purchase of your home will likely change how much you will need to spend on expenses every month. If you have trouble saving now, your finances may be too tight with the purchase of a home. Some questions to ask yourself:

How will the purchase of a home affect my monthly budget and my ability to save?
Can I support the additional expenses that the purchase of a home will bring?
Do I expect to maintain a stable income for the foreseeable future?

Here is an example of expense categories to help you estimate your monthly expenses. This can be useful to determine your current monthly expenses and to estimate how these expenses will impact your budget.