Creating a budget is an important step in the home buying process. A budget will help you understand just how much of a home payment you can afford. The added bonus of creating a budget is you will be able to prioritize and eliminate expenses based on your needs and wants.
A monthly budget is a detailed report that provides you a clear snapshot of how much money you have coming in and going out of your household. Every monthly expense and source of income must be itemized in your budget to ensure you have an accurate picture.
Once you have itemized all your sources of income and expenses, your monthly budget will reveal just how much money you can afford to spend on a house payment every month. Below is a downloadable tool you can use to calculate your budget & plan for a mortgage payment.