If there is anything that 2020 has taught us, it is to prepare for the unexpected. Everything can change in the blink of an eye and it is important to have a plan, especially when it comes to managing major expenses.
Buying a house is big decision that requires time, research, and the right mindset. The thought of house payments for the next 30-40 years can cause quite a bit of stress. Nevertheless, if you are even the slightest bit prepared, it could make a big difference. Here are Sunny Communities’ 4 key tips on budgeting for your new home in 2021, whether you’re a first-time buyer or not.
- Calculate Your Income After Tax
- Make A List of Your Monthly Expenses
- Clear Your Debts
- Do Your Research
First things first, ask yourself: Can I afford to buy my dream home with my current income? Knowing where you stand financially prior to making any major decisions is critical. Once you’ve done that, you’ll have a better sense of location, type, and size of home you can comfortably afford, and begin to factor in other additional expenses associated with the purchase.
Make a list of your monthly expenses, including bills, utilities, shopping, and extra leisure costs. Once you have a clear picture of where your money is going, figure out how you can adjust spending habits that may affect your long-term savings.
Clearing your debt is like starting fresh, so that when it comes time to purchase your home you have a clean slate. You want to ensure most of your savings go towards paying off your mortgage. Plus, clearing your debt helps improve your credit which can be an advantage during the approval process.
Sometimes we can get lost in the excitement of buying a new home without properly gathering all the information available. Before making any immediate decisions, check out the housing market and consider the following:
- Where can you get the most value?
- Are the prices among similar homes roughly on par?
If you are a first-time homebuyer, it is important you are asking the right questions to ensure a smooth transaction. Buy smart and let Sunny Communities help make your dreams become a reality. View our current community, Markham GOLD, offering a stunning selection of freehold townhomes. To register, please contact a sales representative via email at [email protected]