Calculating Your Budget

Getting Started

If you're thinking about buying a home, following is some information that will help you with your decision to find and take ownership of the home of your dreams! While buying a home is fun and rewarding, it can also be stressful; buying a home represents the largest single investment you'll probably make, which is why it's important to get good information and advice. I hope you'll allow me to be part of this important milestone in your life!

How Much Home Can You Afford/Getting Approved For a Loan

Before starting your home search, you need to determine your budget and get a reliable estimate of how much you can afford. The first step is to get pre-approved for a mortgage and determine which mortgage is right for you. If you don't have a relationship with a lender, I can help you find one.

Calculating Your Budget

Down Payment

Most homebuyers make an initial down payment - a percentage of the purchase price - on their home. The larger the down payment, the smaller your mortgage and monthly payments will be.


Monthly payment: This refers to your entire monthly cost of home ownership, including mortgage payment (principal and interest), homeowner's insurance and property taxes.

Points: Borrowers have the option of reducing the interest rate on their mortgage by paying "points" at the beginning of the loan,' One point equals 1 percent of the new loan.

Additional Fees: These are one-time costs. Examples of these are detailed on the website, in the Mortgage Tools section. Click on your state and "Get Advice" at top of page.

Your Final Budget

To calculate, add up your available money (monthly salary and any additional income), subtract the down payment, monthly payment, closing costs, moving expenses and any additional expense you expect to incur. When you have arrived at your estimated budget, you are ready to search for your new home!
Tom Hribar Real Estate Services

Tom Hribar