When most people find a house on the market they like, the first thing they think about is if they will be able to afford it. And unfortunately, Burnaby real estate can be out of the price range for some people. But how do you determine what your budget is? Here are some of the major factors that go into determining what home you can afford.
Start with a Mortgage Calculator
Your mortgage is almost always going to be your biggest expense, so it makes sense to start with it. You can get a rough estimate of how much you’ll be able to afford by using a mortgage calculator. These can easily be found online in both basic and advanced version. If you use the basic calculator, you put in the price of the home, your down payment and the interest on the mortgage loan. In the more advanced calculators, you also add things like insurance, property taxes and the loan term. The mortgage calculator is an easy way to get an idea of the home you’ll be able to afford.
Add in All of the Other Small Expenses
Once you buy the house, there will be small expenses to take care of. This includes a home inspection and closing costs. Also, as you get ready to move, you’ll begin purchasing furniture and appliances, which can add up. You should make a list of all of these expenses, and add their costs to what you already have for the mortgage. This way, you won’t be surprised by the amount.
Estimate the Cost of Moving In
When you’re ready to move into the house, there will be more expenses waiting for you. The first one will be hiring a moving company to haul your things. After that, you may need to hire a handyman to fix small problems around the house. There could be other small things that need to be done too, like painting or yard work. You’ll probably be aware of the problems that need to be fixed in the house, but there could be a few surprises, so you should budget for a little more than necessary for this aspect of moving.
Buying and moving into a house is a large investment, but if you figure out a budget beforehand and stick to that budget you shouldn’t be in for any surprises. Just be sure to include all of the small expenses in your budget, and always leave yourself some wiggle room. That way, you’ll be able to enjoy your new home without stressing about your finances.