Griffith Realty
RSS Feed
Subscribe and receive email notifications of new blog posts.
RSS Feed
- 2026 | 16 Posts
- 2025 | 48 Posts
- 2024 | 48 Posts
- 2023 | 48 Posts
- 2022 | 48 Posts
- 2021 | 48 Posts
- 2020 | 44 Posts
- 2019 | 48 Posts
- 2018 | 48 Posts
- 2017 | 2 Posts
- 2014 | 1 Posts
Area Information | 62 Posts
Brighton MI | 31 Posts
Buy a house | 42 Posts
Fenton, MI | 1 Posts
Griffith Realty | 19 Posts
Home Improvement | 31 Posts
Home purchasing tips | 3 Posts
Home Tips | 9 Posts
Homeownership | 23 Posts
Howell, MI | 12 Posts
Livingston County | 130 Posts
Milford, MI | 3 Posts
Sell Your Home | 35 Posts
Uncategorized | 1 Posts
March
18
18
Buying a Home in Howell: Budget Your Way to Your First Home
You've saved, you've planned, you've dreamed, and now it's time to buy. Buying your first home is a special time, but you don't want to let visions of sun-splashed lawns and breezy porches put you in a financial position you cannot maintain over time.
Ideally, you would start planning your finances for homeownership a year in advance of buying. But no matter the timeline, when you're looking at Howell homes for sale, keep these budgeting tips in mind:
- Doing The Math
Take a detailed look at your income and any debts you already have, and consider the "25% rule." Experts say your mortgage should not be more than 25% – 29% of your income. Existing debts should be included in that percentage.
One of the financial points mortgage lenders consider is your debt-to-income ratio. This is the percent of debt you have compared to your income. Generally, if your debt-to-income ratio is higher than 43%, you may be denied. Even if you found a lender willing to go over that ratio, you may find yourself struggling each month when that mortgage payment is due. - Putting It Down
Another number to look at is how much of a down payment you can afford. Ideally, you should have 20% of the purchasing price in cash to use as a down payment. Above that, and your lender may require you pay private mortgage insurance that will be an added line item to your monthly payment. This type of insurance doesn't protect you; it protects the lender if you stop making payments. It typically costs .5% - 1% of your total loan. So, if you buy a $100,000 home, you could be paying around $83 a month for PMI. - Closing In
Beyond the down payment and total cost, a first-time homebuyer should also be aware of the closing costs. These costs can be between 2%-5% of the total cost of the home and include such things as attorneys' fees, taxes, loan application fees, and title fees. Sometimes these costs can be negotiated in the final cost of the home or the mortgage payment. - Other expenses
Of course, your mortgage payment isn't the only cost of owning a home. Make sure you're looking at the additional costs of living in that particular house. What do the taxes and insurance cost? What are the monthly utilities for the property? Will you need a big outlay in landscaping tools to care for the lawn? Is there a homeowners association that will require fees?
Additionally, don't forget moving to a new residence comes with costs too. Moving expenses, plus deposits on utilities can drain the bank account if you aren't prepared. - Costing You
Finally, when choosing your first home, consider your lifestyle. Will you enjoy taking care of a large lawn or cleaning a pool regularly if these are part of the property? If you enjoying traveling or going camping, will you be frustrated if you need to stay home to clean or maintain your home? These non-monetary demands can add strain and rob you of some of the joy you have in your home.
So congratulations on considering getting your first home! Do your homework, line up your financing, and get ready to enjoy turning a house into a home. Contact us and let our REALTORS® guide you in the home buying process.