Step 1 – Determine Your Budget

Buying a home is a major financial milestone, and proper planning is key to a successful purchase. The first step in preparing to buy a home is determining your budget. Knowing what you can afford upfront will save you time, stress, and money during the home buying process.

💡 Calculate How Much You Can Afford

Begin by evaluating your income, expenses, debts, and savings. A popular rule of thumb is the 28/36 rule:

• Spend no more than 28% of your gross monthly income on housing expenses (mortgage, taxes, insurance).

• Keep total monthly debts—including your mortgage, credit cards, and loans—below 36% of your gross monthly income.

Steps to Set Your Home Buying Budget:

1. Review Your Monthly Income: Calculate your steady, predictable monthly income from all sources.

2. List Your Monthly Expenses: Include utilities, groceries, transportation, insurance, and entertainment.

3. Factor In Your Debts: Account for car loans, student loans, credit cards, and other debts.

4. Calculate Available Savings: Determine your available cash for a down payment, closing costs, moving expenses, and an emergency fund.

📋 Key Upfront Costs:

• Down Payment: Typically ranges from 3% to 20% of the home’s price.

• Closing Costs: Expect to pay 2% to 5% of the home price for fees such as appraisals, title insurance, and legal services.

• Prepaid Expenses: These include taxes and homeowner’s insurance premiums.

📊 Use Mortgage Calculators

Online mortgage calculators are a great starting point to estimate your monthly mortgage payment. However, consulting with a licensed mortgage lender for a pre-approval is highly recommended to get an accurate picture of your buying power.

✅ Why Budgeting Is Crucial

Determining your home buying budget before shopping gives you a clear financial roadmap and prevents you from falling in love with homes outside your price range. It also makes you a stronger buyer in the eyes of sellers.

Step 2 – Assemble Your Team

Once you’ve determined your budget, the next crucial step in preparing to buy a home is assembling your real estate team. Surrounding yourself with trusted professionals ensures a smooth, successful buying process and helps you avoid costly mistakes.

👥 Find a Reputable Real Estate Agent

Your real estate agent is your most important ally throughout the home buying journey. A skilled agent will:

• Guide you through every step of the process, from home search to closing.

• Negotiate effectively on your behalf to secure the best deal.

• Offer valuable insights about neighborhoods, market trends, and property values.

• Provide access to listings and off-market properties not available to the general public.

• Help coordinate home inspections, appraisals, and contract paperwork.

✔️ Tips for Choosing the Right Agent:

• Look for local expertise—agents who know your target area inside and out.

• Check online reviews and ask for referrals from friends or family.

• Verify their experience with buyers in your price range and preferred neighborhoods.

• Ensure they’re responsive, communicative, and proactive.

🔑 Additional Team Members to Consider:

• Mortgage Lender: Get pre-approved for a loan to strengthen your offers.

• Home Inspector: Evaluate the property’s condition before you finalize your purchase.

• Real Estate Attorney: (If required in your state) to review contracts and legal documents.

🤝 Why Assembling Your Team Matters:

Having the right team in place streamlines your home buying experience, reduces stress, and helps you avoid common pitfalls. Your agent and lender, in particular, are key to securing your dream home on favorable terms. I would be happy to help guide you through the process!

Click the link for more info and contact information if you are looking in metro-Atlanta. https://kellifinney.com/