• Home
  • Join Us!
    • Membership
    • Become a Member!
    • About Us
    • Board and Staff
    • Credit Union News
    • Careers
  • Loans
    • New Vehicle Loans
    • Used Vehicle Loans
    • Share Secured Loans
    • Mortgages
    • Home Equity Line of Credit
    • VISA Credit Card
    • Signature Loans
    • Sallie Mae Student Loans
  • Accounts
    • Share Savings >
      • Kasasa Saver
    • Share Draft / Checking Account >
      • Kasasa Cash Checking
      • Kasasa Cash Back Checking
      • Kasasa Tunes Checking
    • Club Savings
    • Money Market
    • Certificates
    • IRA
    • Accounts for Minors
  • Services
    • Virtual Banking Next! & E-Statements
    • Mobile Banking
    • Co-Op ATM Network
    • Insurance Services
    • Visa Debit Card
    • Banking Conveniences
    • Shop for a Car
  • Rates & Fees
    • Rates
    • Fees
  • Member Discounts
  • Annual Meeting
  • Scholarship
  • Member First System Conversion
  • Premium Text Notifications
EPB EMPLOYEES CREDIT UNION
  • Home
  • Join Us!
    • Membership
    • Become a Member!
    • About Us
    • Board and Staff
    • Credit Union News
    • Careers
  • Loans
    • New Vehicle Loans
    • Used Vehicle Loans
    • Share Secured Loans
    • Mortgages
    • Home Equity Line of Credit
    • VISA Credit Card
    • Signature Loans
    • Sallie Mae Student Loans
  • Accounts
    • Share Savings >
      • Kasasa Saver
    • Share Draft / Checking Account >
      • Kasasa Cash Checking
      • Kasasa Cash Back Checking
      • Kasasa Tunes Checking
    • Club Savings
    • Money Market
    • Certificates
    • IRA
    • Accounts for Minors
  • Services
    • Virtual Banking Next! & E-Statements
    • Mobile Banking
    • Co-Op ATM Network
    • Insurance Services
    • Visa Debit Card
    • Banking Conveniences
    • Shop for a Car
  • Rates & Fees
    • Rates
    • Fees
  • Member Discounts
  • Annual Meeting
  • Scholarship
  • Member First System Conversion
  • Premium Text Notifications

How To Financially Prepare to Buy a House

10/5/2019

44 Comments

 
Picture
Tips from Mandy Thomas

First, make sure you know how much extra you can put down on it a year and what the rules are around that. You don’t want to put extra down and find out that you now have to pay a penalty.
BRAINSTORM WHAT THE NEXT 2-10 YEARS COULD LOOK LIKE FOR YOUI know this isn’t the “sexiest” thing to do, but it is so important to do this to make sure you are not just basing your decision on where you are now, but also taking into account the life changes that will more than likely be coming up in the pipeline or what will be coming up.


Think of Life Changes Such As:
  • Marriage
  • Your health, your partner’s health (if you have a partner)
  • Job changes, the likelihood of you being able to get another job in the same area where you want to buy a home
  • The stability of your job
  • Changes in the economy or your industry and potentially taking a pay cut, fewer benefits, etc.
  • Variability in monthly income (if you have months of higher income, lower income, if you are off during the summer or winter, etc)
  • Potential job relocations
  • Starting a family, going down to one income, or receiving 50-70% of your income while on maternity/paternity leave
  • Childcare when you go back to work
  • When you would want to have another child
  • Increased costs of childcare
  • Increased costs of children
  • Potentially aging parents who may need the time or financial care
  • If you or your partner are thinking about potentially pursuing entrepreneurship and will have an irregular and unsteady income for quite a while
  • If you decide on a variable interest rate, interest rates potentially going up (and therefore increasing your monthly payments)

REALISTICALLY FIGURE OUT WHAT YOU CAN AFFORDTake your monthly take-home pay (after you’ve paid taxes) and figure out what is 33% of your income. As a financial coach, I see a lot of people who are living in homes that they truly can’t afford and they are now feeling the stress of having their fixed expenses so high and not a lot of “breathing” room to get ahead. The reason I say to figure out what 33% of your monthly take-home pay is, is because that is the highest that you would want your TOTAL monthly housing expenses to be. If it goes above the 33% mark, you will really notice that you are having a hard time with other bills, because your housing costs are such a large percentage of your income.
If you can keep it towards the 25-30% mark that is better, obviously the lower, the better.
When you are figuring this number out, I am not just referring to your monthly mortgage amount, you will also want to include within this is:
  • Monthly mortgage amount
  • Mortgage insurance (if applicable)
  • Utilities
  • Property Taxes
  • Home Insurance
  • Repairs, Maintenance
  • Landscaping, Basement, Renos, Updates
  • Closing costs (lawyer fees, realtor fees, home inspection – you will want to get a home inspection even if the home is new)
If you are just using the monthly mortgage amount, it could be $1200 as an example but after you calculate in these other costs it could easily be $1750+, which is a big difference to use for your calculations.
One of my biggest concerns I see when people are wanting to purchase a home is not having a truly clear picture of your finances, before looking for a home. When you are working with a realtor, a builder or other home professionals, they are only able to help you out as much as you can clearly articulate your financial situation to them. If you aren’t entirely clear on your financial situation, don’t expect those who are trying to help you to be either!
They don’t see all of the things happening behind the scenes, they don’t know exactly what your expenses are, so you need to know this so they can properly help you find a home that is right for you, not just now, but in the future. But they can’t guess, so you need to do your own due diligence ahead of time, so they are able to help guide you into what is truly best for you.
FIGURE OUT ROUGHLY WHAT YOU NEED FOR A DOWN PAYMENTIf you are considering looking at a home that is around $150,000 and you want to put down 15%, your goal will be to save $22,500 for a down payment.
Sit down and actually play around with the numbers to see what you will potentially be looking at as needing to have saved for a down payment.
OPEN UP A SEPARATE SAVINGS ACCOUNT TO PUT YOUR SAVINGS INTO FOR YOUR HOME DOWN PAYMENTMost people have one savings account but they are trying to save for multiple things in that one savings account, which makes it really difficult to have transparency to know how much you have saved towards all of your goals. This is just one reason why I highly suggest opening up a separate savings account that is just for saving for a house, some banks even allow you to “name” the account, which I also suggest doing!
MAKE MASTERING YOUR CASH FLOW AN UTMOST PRIORITYThis is definitely one of the most important things to do before committing to putting extra towards your mortgage. When you have clarity with your money and you become really competent at mastering your cash flow (not just “budgeting”), you truly know how much extra you can put towards your mortgage without causing you to come up short in other areas. It will also help you to see your months that you may have higher income available to put towards your mortgage, so you can allocate it for it before it comes and all of a sudden is put towards something else. Feeling confident with cashflow management and taking control of your finances months in advance, is one of the skills that I help my financial coaching clients to achieve.
By making mastering cash flow a priority, one of my clients “D” (to protect her identity), we were able to make sure that all of their goals were being achieved including paying into hers and her husbands retirement funds AND we were able to make it so they could put $50,000 additionally towards paying off their mortgage each year for the remaining term.
FIGURE OUT WHEN YOU WOULD POTENTIALLY LIKE TO PURCHASEOnce you have figured out approximately what you need to save as a down payment, then figure out when you would potentially like to purchase.
If it is 2 years from now, that is 24 months that you have to save up. Which you can then figure out how much a monthly, you need to start saving right away.
If you want to save $22,500 for a down payment in order to purchase 2 years from now, you would need to be saving approximately $938 each month.
If you wanted to save $20,000 for a down payment to purchase in 3 years from now, you would need to be saving $556 each month.
Knowing how much you need to save each month, can really make it easier to figure out between you and your partner (if you are purchasing a home together), what the total needs to be that you will contribute and then you can discuss how you will break down what each person is contributing.
PAY OFF CREDIT CARD & CONSUMER DEBT FIRSTFocus on paying off any credit card debt or consumer debt that you may have, so you have this high-interest rate debt paid off. Then you can “roll over” the money that you were paying towards these debts, to use as extra money to put into your house down payment fund.


44 Comments
Tez link
5/19/2021 04:23:14 pm

I like your finance tips. I need to buy a house. I'll have to consider getting a mortgage.

Reply
David link
8/5/2021 11:17:15 pm

Thank you for sharing the post/article.
If you need Fake Bank Statements for proof of income or proof of address, you can get help from these designers. You can contact them at given information.
-- They can create Fake Bank Statements, Pay Stubs, Payslips, T4, W-200 or any other documents.
-- Quick turnaround, most within 24 hours
-- Over 12 years experience helping individuals and businesses fix their papers!
---- Fast and discreet - email or call for a discussion.
Quickly get proof of address or proof of income by Bank Statements, Paystubs, Payslips, Form W-200 or T4 Slips. Offering a 15% discount on Bitcoin payment.
LiveChat: https://tawk.to/chat/5b056f7bd0f6723da57ecd06/default/?$_tawk_popout=true
Call / Message on WhatsApp : +1 914 274 8666
Contact: (+1) 914 202 3836
Email: quickpapersfix@gmail.com
Website: http://fakebankstatements.net

Reply
Tez link
8/23/2021 04:40:56 pm

I like what you said about purchasing later to save more on the down payment. I need to get a home loan for a house I am looking at in North Carolina. I need to take out a mortgage with as close to 3% interest rate as I can.

Reply
samuel link
8/30/2021 09:06:06 pm

There are many aspects of this article on which I concur with you. You have generated synapses in my brain not used often. Thank you for getting my neurons jumping.

Reply
Property Surveyor in Camden link
9/15/2021 09:43:54 am

Good read. I have learned much from this article. Thanks a lot

Reply
Milwaukee Surveyors Group link
9/28/2021 05:14:04 am

Great article! Thank you for sharing this informative post, and looking forward to the latest one!

Reply
Tex Hooper link
1/3/2022 04:57:44 pm

I appreciate what you said about paying off the mortgage as fast as possible. I need to get a new loan for 15 thousand dollars. I'll have to consider getting an agent to help me with the payment plans.

Reply
Thomas Clarence link
3/4/2022 09:19:43 am

You made an interesting point when you explained that it is a good idea to focus on paying off any debts that you might have when trying to purchase a home. While you are paying off your debt, it might be a good idea to consult with a loan officer. The loan officer will be able to help you figure out what loans you might be able to qualify for.

Reply
Water Filtration Chesapeake link
8/13/2022 12:28:26 am

Appreciate you blogging this

Reply
mr Aarav link
9/1/2022 08:30:16 am

This is an Excellent & great post. I LOVE this article! It’s such a beneficial for all visitors. Contact us on WHATSAPP for quick response. You can also start a LIVE CHAT session to place an order without any hassle. We recommend you to contact us even after placing the order using our forms.
You can Contact us at:
LiveChat:https://tawk.to/chat/5b056f7bd0f6723da57ecd06/default/?$_tawk_popout=true
Call / Message on WhatsApp : +1 914 274 8666
Contact: (+1) 914 302 9443
Email: quickpapersfix@gmail.com
Website: http://bankstatementediting.com

Reply
Concrete Foundations link
9/21/2022 08:42:18 pm

A wise method to buy a home if you're getting a mortgage is to set aside at least 25% of the sale price in cash to pay for a down payment, closing costs, and relocation expenses.

And also if you are planning to build a house, get the best Concrete Foundations service.

Reply
Furnace Repair Spokane link
9/21/2022 08:46:47 pm

A down payment, a high credit score, and a manageable debt-to-income ratio are some of the most crucial conditions for purchasing a property. Homebuyers should also budget for closing expenses, which must be paid before the last piece of paperwork is signed to purchase the property.

Look now for the best Furnace Repair Spokane

Reply
Check out more link
11/29/2022 07:00:34 pm

A down payment, a high credit score, and a manageable debt-to-income ratio are some of the most crucial conditions for purchasing a property. Homebuyers should also budget for closing expenses, which must be paid before the last piece of paperwork is signed to purchase the property.

Reply
Custom Home Builder Spokane link
11/29/2022 07:05:55 pm

A wise method to buy a home if you're getting a mortgage is to set aside at least 25% of the sale price in cash to pay for a down payment, closing costs, and relocation expenses. Therefore, if you spend $250,000 on a home, you might pay more than $60,000 to cover all of the associated costs.

You can check our website too.

Reply
Duct cleaning Jacksonville link
12/21/2022 04:11:55 pm

Being real about what you can afford it's one of the most imporant steps, Some people just want to get the nicest house, car, phone or many other things whiout realizing that they can't actually afford any of those things and then get knee deep in debt so be really careful with that. good thing that with ComfortTemp you will get the best service you can at the most affordable price, that's why they're my top one duct cleaning company in Jacksonville.

Reply
Property Management link
1/17/2023 07:12:05 am

nice post. Thank you for posting something like this

Reply
Kitchen Remodeling Near Me link
1/18/2023 01:30:53 am

I read this post your post so nice and very informative post thanks for sharing this post

Reply
Drywallers in Dallas Texas link
1/18/2023 03:59:40 am

very interesting, good job and thanks for sharing such a good blog.

Reply
Drywall Solutions Contractor link
1/18/2023 04:17:35 am

Really nice article and helpful

Reply
Bathroom Remodeling Contractors link
1/18/2023 04:28:38 am

Thanks for sharing this site bro. fantastic

Reply
Realtors Edmonton link
1/18/2023 04:49:10 am

Raising your credit score can help you access competitive financing options. Many credit card issuers and banks provide credit scores for free.

Reply
HVAC service Gainesville link
1/20/2023 08:04:05 am

Hey Mandy thanks a lot for sharing this tips with us, I'm really sure that they might help a lot of people looking to buy a house! I would like to recommend you the best HVAC service in Gainesville!

Reply
Rental Properties link
1/25/2023 08:33:20 am

I’ve been surfing on the web more than 3 hours today, yet I never found any stunning article like yours.

Reply
http://saratogamovingcompany.com/ link
1/27/2023 06:30:34 am

How much should I save before buying a house?

Reply
read more link
1/27/2023 02:56:41 pm

This is the best tip. I really need it now since I really wanted to buy a house.

Reply
change my address online link
2/15/2023 09:03:48 am

In God's time, I claim that next year's gonna be our turn to have our own home soon!

Reply
Long Beach concrete services team link
2/15/2023 07:38:47 pm

Start automating transfers into savings with each payment, even if it's a smaller amount than you hoped.

Reply
car loans Brisbane link
2/18/2023 04:42:32 am

Brokers are dedicated mortgage professionals who will commit themselves to guiding you through the home buying process from start to finish.

Reply
https://www.seo-tampa.org link
2/22/2023 07:12:38 am

We have been trying and trying to work more and earn more to buy a house. I am praying everyday that we'd be able to finally buy and sustain it for our children in the future.

Reply
cement contractor link
2/27/2023 07:26:26 pm

I really like seeing websites that perceive the value of providing a quality useful resource for free. Good work

Reply
Spokane Tree Trimming link
2/27/2023 09:15:07 pm

The property market in your area will determine how long it takes you to find your ideal home. But, after you are under contract, closing takes place on a home in an average of 45 to 60 days. When negotiations and counteroffers are involved, closing can take even longer, while it can occasionally happen in less time than 45 days when both the buyer and the seller are eager to close the deal.

Reply
https://www.tulsahvac.net link
3/1/2023 05:32:01 am

The kinds of documents you'll need to apply for a home loan can include pay stubs, tax returns, bank statements, and investment account statements.

Reply
Wheaton Home Improvement link
3/1/2023 09:13:19 am

Most of this article also applies for Home remodeling, Sometimes when you want to get some upgrades for your home you might need to get another mortgage in your house in order to afford them1 I would like to recommend my favorite Home remodeling in wheaton

Reply
Sitio web link
3/1/2023 06:30:40 pm

That's a good sharing, I would love to subscribe your Blog but I can't see any tab to subscribe your blog.

Reply
https://www.us-mailing-change-of-address.com link
3/4/2023 06:49:24 pm

Buying a house might be very costly but it is always the best investment.

Reply
landscapingprincegeorge.com/snow-removal-prince-george link
3/6/2023 06:41:50 pm

I recommend my all fellows to read this great and informative post. Keep it up!

Reply
www.longbeachconcreteservice.com link
3/8/2023 01:33:56 am

You may find as you start shopping for financing that many mortgage companies recommend you put at least 20 percent down. This is done for a few important reasons, though the main one is that with 20 percent down, you'll be able to avoid a monthly private mortgage insurance fee.

Reply
Tampa Property Management link
3/8/2023 08:24:28 am

Yes. I view it as additional feedback. If the commenter happens to mention something I talked about or otherwise sounds like they knew what I was reading, I find that to be a good sign I was able to get my message across.

Reply
Jane Clark link
3/10/2023 06:32:01 am

This is just one reason why I highly suggest opening up a separate savings account that is just for saving for a house, some banks even allow you, Thank you for the beautiful post!

Reply
Carl Brown link
3/11/2023 10:55:35 am

But in the future. But they can’t guess, so you need to do your own due diligence ahead of time, so they are able to help guide you into what is truly best for you. Thank you, amazing post!

Reply
impermeabilizacion de terraza link
3/12/2023 06:15:58 pm

Thanks for taking this opportunity to discuss this, I feel fervently about this and I like learning about this subject.

Reply
Jessie Holloway link
3/15/2023 10:50:25 am

Thanks so much for the advice to have a truly clear picture of what you can afford before you jump to buy a house. My sister and her husband have been looking to buy a house and they've been trying to budget for it. We've been looking into finding a mortgage loaner to help them understand how much they'll be able to pay and what monthly payments are going to look like.

Reply
Anthony Swaim link
3/18/2023 11:26:06 am

When you are working with a realtor, a builder or other home professionals, they are only able to help you out as much as you can clearly articulate your financial situation to them. Thank you for sharing your great post!

Reply
Exterior Painter Joliet link
3/21/2023 09:00:51 am

I want to buy my own house someday. Thanks for sharing!

Reply



Leave a Reply.

    Archives

    January 2022
    June 2021
    April 2021
    January 2021
    October 2020
    June 2020
    May 2020
    April 2020
    February 2020
    January 2020
    October 2019
    April 2019
    March 2019
    December 2018

Location

1500 McCallie Avenue
​Chattanooga, TN 37404 USA

Phone: (423) 648-3413
​Fax: (423) 698-2912

Contact Us

MEMBERSHIP
  • Join Us
  • Board and Staff

LOANS
  • New Vehicle Loans
  • Used Vehicle Loans
  • Share Secured Loan
  • Mortgages
  • Credit Cards
  • Signature Loans

ACCOUNTS
  • ​Share Savings
  • ​Share Draft / Checking
  • Club Savings
  • Money Market
  • Certificates
  • IRAs
  • Accounts for Minors

​Privacy Policy
​
Picture
Picture
Picture

​SERVICES
  • Online Banking
  • ​Co-Op ATM Network
  • ​Bill Payer
  • Insurance Services
  • Visa Debit Card
  • ​Member Discounts
  • Other Banking Conveniences
  • ​Fees

RATES

  • Home
  • Join Us!
    • Membership
    • Become a Member!
    • About Us
    • Board and Staff
    • Credit Union News
    • Careers
  • Loans
    • New Vehicle Loans
    • Used Vehicle Loans
    • Share Secured Loans
    • Mortgages
    • Home Equity Line of Credit
    • VISA Credit Card
    • Signature Loans
    • Sallie Mae Student Loans
  • Accounts
    • Share Savings >
      • Kasasa Saver
    • Share Draft / Checking Account >
      • Kasasa Cash Checking
      • Kasasa Cash Back Checking
      • Kasasa Tunes Checking
    • Club Savings
    • Money Market
    • Certificates
    • IRA
    • Accounts for Minors
  • Services
    • Virtual Banking Next! & E-Statements
    • Mobile Banking
    • Co-Op ATM Network
    • Insurance Services
    • Visa Debit Card
    • Banking Conveniences
    • Shop for a Car
  • Rates & Fees
    • Rates
    • Fees
  • Member Discounts
  • Annual Meeting
  • Scholarship
  • Member First System Conversion
  • Premium Text Notifications