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  • Kerri and Ray

Buy, buy, buy?!!!

Can you afford to buy right now?

First, look at your bank account and your budget. Do you have enough money for a down payment? How much do you make each month? How much can you budget for a mortgage payment?For most conventional loans, 20% down payment is required. There are other loans that don’t require any down payment. Look for first time homebuyer loans (FHA). If you don’t have 20% down payment, you may be required to pay a P.M.I. (private mortgage insurance). This is a separate cost included in your mortgage that you might have to pay if you didn’t have a down payment of 20%.

Think about your expenses that you have currently. Do you have a car payment, student loan, or credit card debt? Don’t forget about paying those debts off. You don’t want to buy too much house, and not be able to afford to pay those debts as well.

Lastly, write it all out. Write down your monthly income, write down all your monthly expenses and debt payments. Is there a way to make a mortgage payment with all of those expenses? If yes, great! Keep your budget and make sure to set aside that money. If not, maybe wait a little while, work on a stricter budget, and save all you can for a down payment.


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