Tips to prepare your budget before buying a home


Tips to prepare your budget before buying a home
  1. Tips to prepare your budget before buying a home
    philasun.com
    BPT It’s virtually impossible to know what size home you can afford if you aren’t fully aware of how much money you are earning and how much you are spending each month. Start with your income: How much do you bring home after taxes and retirement plan contributions? Next, look at your expenses: What are... The post Tips to prepare your budget before buying a home appeared first on The Philadelphia Sunday Sun…
    Pennsylvania (PA)

BPT

It’s virtually impossible to know what size home you can afford if you aren’t fully aware of how much money you are earning and how much you are spending each month.

Start with your income: How much do you bring home after taxes and retirement plan contributions?

Next, look at your expenses: What are your necessary expenses? How much are you paying each month toward your debt? What additional expenses do you have that wouldn’t be deemed “necessary?” How much money do you have left (if any)?

This will help you see how much breathing room is in your current budget, what expenses might be on the chopping block and the space you have for additional home and mortgage expenses when buying a home.

Consider the potential costs of being a homeowner

While rent payments are generally straightforward and predictable, the same can’t always be said for homeownership costs. Your situation can vary depending on a variety of factors, but here are a few things you might need to prepare your budget for.

Property taxes: The amount you pay will depend on the area in which you are purchasing a home. This amount can be subject to annual adjustment by the municipality or local taxing authority.

Homeowners insurance: Lenders will require you to provide proof of coverage before closing. The amount you pay will depend on your level of coverage, your property and the location. Insurance costs can increase from time to time.

Private mortgage insurance (PMI) or mortgage insurance premiums (MIP): If your down payment is less than 20 percent on a conventional mortgage, your lender will require you to carry private mortgage insurance. If you have an FHA loan, you’ll be required to pay mortgage insurance premiums throughout the life of the loan.

Home ownership assistance:  A company like Unison Home Ownership Investors can strengthen your down payment overnight and eliminate the need for private mortgage insurance (see their Unison HomeBuyer program). Using this method will typically save you between 15 and 20 percent per month on your mortgage payment, but you could owe a portion of the appreciation on the home when you sell.

Homeowners association fees: Fortunately, not all homes have a homeowners association to pay into. Purchasing a home with HOA-covered amenities could cost, on average, an additional $200-$400 per month.

Maintenance fees: Ah, the pitfalls of being a homeowner. The costs that would normally fall to a landlord, like fixing broken plumbing or a heater on the f…

  1. Pittsburgh’s Juneteenth Celebration 2017! With Michael Brown Sr. (Courier exclusive video) 6.17.17

    Newpittsburghcourieronline.com -  Pittsburgh
    Also On New Pittsburgh Courier: Red Carpet Rundown: 2016 Oscars 17 photos Launch gallery Red Carpet Rundown: 2016 Oscars 1. Chris Rock 1 of 17 2. Sylvester Stallone & His…
  2. The Courier at WAMO 100 Day 2017! See performances from Pittsburgh’s own dance groups!

    Newpittsburghcourieronline.com -  Pittsburgh
    Also On New Pittsburgh Courier: Red Carpet Rundown: 2016 Oscars 17 photos Launch gallery Red Carpet Rundown: 2016 Oscars 1. Chris Rock 1 of 17 2. Sylvester Stallone & His…
  3. Pittsburgh guitarist Karl Franklin performs at Schenley Park… (7.12.17)

    Newpittsburghcourieronline.com -  Pittsburgh
    Also On New Pittsburgh Courier: Red Carpet Rundown: 2016 Oscars 17 photos Launch gallery Red Carpet Rundown: 2016 Oscars 1. Chris Rock 1 of 17 2. Sylvester Stallone & His…
  4. Pittsburgh artist Jeghetto paints August Wilson mural for his hometown, with help from locals (7.15.17)

    Newpittsburghcourieronline.com -  Pittsburgh
    Also On New Pittsburgh Courier: Red Carpet Rundown: 2016 Oscars 17 photos Launch gallery Red Carpet Rundown: 2016 Oscars 1. Chris Rock 1 of 17 2. Sylvester Stallone & His…
  5. Black Pittsburghers goin’ crazy at the Penguins’ Stanley Cup parade! (6.14.2017)

    Newpittsburghcourieronline.com -  Pittsburgh
    Also On New Pittsburgh Courier: Red Carpet Rundown: 2016 Oscars 17 photos Launch gallery Red Carpet Rundown: 2016 Oscars 1. Chris Rock 1 of 17 2. Sylvester Stallone & His…
  6. Pathologist to speak at Ludwig House fundraiser

    Tribdem.com - Johnstown
    08.17 / 07:14 tribdem.com
    One of the world’s most accomplished forensic pathologists is joining the effort to save Johnstown’s Ludwig Hou…
  7. Johnstown rally set in solidarity with Charlottesville

    Tribdem.com - Johnstown
    08.17 / 07:14 tribdem.com
    Memories of the woman and two police officers who died during last weekend’s white nationalist rally in Charlottesville, Virginia, along with all individuals lost during the fight for civil rights, will be honored during a rally in Johnstown’s Central Par…
  8. Conemaugh outpatient center plans approved; Will be built on former Somogyi’s coal yard in Ebensburg

    Tribdem.com - Johnstown
    08.17 / 07:14 tribdem.com
    Plans for Conemaugh Health System’s $22 million Ebensburg outpatient center received the final green light Wednesday with approval by Cambria Township s…
  9. Thousands gather for peaceful candlelight vigil at UVA

    Gantdaily.com - Pennsylvania (PA)
    08.17 / 07:10 gantdaily.com
    Thousands gathered Wednesday night for a vigil at the University of Virginia days after violent clashes in Charlottesville led to the death of a woman during a white supremacist rally. The crowd sang, “we are not afraid,” a verse from “We Shall Overcome.” The vigil organized by students and faculty grew from word of mouth,…
  10. Costello to host town hall meeting in Lebanon, opponents set to criticize record

    Abc27.com-PA
    08.17 / 07:02 www.abc27.com
    A republican congressman set to hold a town hall in Lebanon will not get a warm welcome from his opponents who are planning a counter…
  11. Police investigate Swatara Township deadly shooting, crash

    Abc27.com-PA
    08.17 / 07:02 www.abc27.com
    Police are investigating a deadly shooting and…
  12. Where have all the leaders gone?

    Gantdaily.com - Pennsylvania (PA)
    08.17 / 06:11 gantdaily.com
    America may soon face a question of leadership. If a president is judged by a growing slice of the population to have abdicated his office’s traditional imperative to provide steady, moral and unifying authority, where does the nation turn next? The fallout of Donald Trump’s stunning news conference Tuesday has focused largely on the equivalence…
  13. White supremacist Richard Spencer denied at University of Florida

    Gantdaily.com - Pennsylvania (PA)
    08.17 / 06:11 gantdaily.com
    White supremacist Richard Spencer is running out of campuses to host him. The University of Florida shut down a request by Spencer’s group to have him speak on September 12. “Amid serious concerns for safety, we have decided to deny the National Policy Institute’s request to rent event space at the University of Florida,” university…
  14. Neo-Nazi website’s return via Russian help proves short-lived

    Gantdaily.com - Pennsylvania (PA)
    08.17 / 06:11 gantdaily.com
    Neo-Nazi website The Daily Stormer found a temporary home on the Russian internet after American tech companies refused to host it. GoDaddy canceled the website’s registration on Monday after The Daily Stormer published a derogatory story about Heather Heyer, who was killed while protesting against a white supremacist rally in Charlottesville, Virginia, on Saturday. Google…
  15. Powerball jackpot climbs to $510 million

    Gantdaily.com - Pennsylvania (PA)
    08.17 / 06:11 gantdaily.com
    Here we go again. After Wednesday night’s Powerball drawing yielded no jackpot winners, the prize climbed from $430 million to a gargantuan $510 million. The numbers drawn Wednesday were 9, 15, 43, 60, 64 and the Powerball was 4. The grand prize pool has been growing since June 10 — meaning there have been 19…
  16. Back-to-School help offered, but are families accepting?

    Abc27.com-PA
    08.17 / 06:04 www.abc27.com
    MILLERSBURG, Pa. (WHTM) — The line was out the door Wednesday at Millersburg Assembly of God, for the church’s fourth annual free bac…
  17. Free cruise robocall lawsuit settlement could mean cash for you

    Abc27.com-PA
    08.17 / 06:04 www.abc27.com
    People offered a free cruise over the phone may be in for some…
  18. Unity rally in Carlisle draws hundreds from around the region

    Abc27.com-PA
    08.17 / 06:04 www.abc27.com
    Cumberland Valley Rising organized Wednesday night's unity rally in the Carlisle…
  19. Express Scripts to limit opioids; doctors concerned

    Observer-reporter.com - Washington
    08.17 / 05:23 observer-reporter.com
    ST. LOUIS – The nation’s largest pharmacy benefit manager will soon limit the number and strength of opioid drugs prescribed to first-time users as part of a wide-ranging effort to curb an epidemic affecting millions of…
  20. Wisconsin man drives himself to hospital with nail in his heart

    Observer-reporter.com - Washington
    08.17 / 05:23 observer-reporter.com
    MILWAUKEE – A Wisconsin man who doctors say came perilously close to death after accidentally shooting a nail into his heart while working on his house calmly drove himself to the hospital and even parked his pickup truck in the lot before walking into the emergency…