Better Homes and Gardens Rand Realty
Kenneth Rabasco, Better Homes and Gardens Rand RealtyPhone: (914) 844-2885
Email: [email protected]

How Much Money Do You Need to Buy a Home?

by Kenneth Rabasco 04/21/2019

The amount of money you will need to ensure you can purchase a house varies based on a number of factors. For example, if you want to purchase a house in a big city, you may need to save more money than you likely would require to buy a residence in a small town. Meanwhile, your decision to choose a fixed-rate mortgage over an adjustable-rate mortgage – or vice-versa – can impact your monthly housing costs. And let's not forget about the costs of home utilities like electricity and water, either.

Ultimately, it helps to put together a homebuying budget before you embark on a house search. Because if you know how much money you have at your disposal, you can map out your house search accordingly. And as a result, you can minimize the risk of spending too much to acquire your dream residence.

Let's now take a look at three tips to help you craft an effective homebuying budget.

1. Evaluate Your Current Expenses

An in-depth assessment of your current monthly expenses is key. If you conduct an expense evaluation, you can find out how much you spend on various must-haves and wants. You then can take steps to reduce your monthly expenses and increase your savings for a new home.

It also never hurts to consult with a financial planner. If you have a financial planner at your side, you can gain expert insights to help you evaluate your current expenses. Plus, you can work with a financial planner to determine the best course of action so you can eventually buy your dream residence.

2. Get Pre-Approved for a Mortgage

Meet with a variety of banks and credit unions and explore your mortgage options – you will be happy you did. If you assess your mortgage options closely, you can find one that complements your finances. And once you get pre-approved for a mortgage, you will know how much you can spend on a house.

Generally, it is beneficial to meet with as many banks and credit unions as you can. If you consult with myriad lenders, you can receive extensive insights into many mortgage options. Best of all, you will be better equipped than ever before to find the lowest-possible interest rate on a mortgage.

3. Consider Your Down Payment Options

The down payment required for a home purchase varies, but it commonly ranges between 5 percent and 20 percent of a house's total price. If you account for a down payment as you craft a homebuying budget, you can use this total to plan ahead for the property buying journey.

Lastly, you may want to collaborate with a real estate agent as you prepare to launch a home search. In addition to helping you find your dream residence, a real estate agent can put you in touch with potential lenders and offer plenty of guidance throughout the property buying journey.

Ready to pursue a home? Use the aforementioned tips, and you create a successful homebuying budget.

About the Author
Author

Kenneth Rabasco

Professional Associations & Designations Ken Rabasco aka Bosco is a member of the National Association of Realtors, the New York State Association of Realtors, Hudson Gateway Association of Realtors, and the Hudson Gateway Multiple Listing Service. As a lifelong Westchester resident, Bosco has a vast and extensive knowledge of the intricate details that comprise the communities of Southern Westchester, be it a recommendation for the best place to have dinner in one of the many River Town restaurants, or a market forecast for what the future will hold for the next place you'll call home. With a laser-attentiveness to detail and a never-faltering determination to get the job done, Bosco is supremely dedicated to his clients, and promises the very best in service to those who work with him, whether a first-time buyer or a long-time veteran of the market. Real Estate Expertise Licensed Real Estate Salesperson with Better Homes & Gardens – Rand Realty. Bosco specializes in listing and selling of co-ops, condos and houses in Southern Westchester covering Hartsdale, Ardsley, Scarsdale, Eastchester, Tuckahoe, White Plains, as well as the River Towns and those that are on the Long Island Sound. As a licensed real estate salesperson for Better Homes & Gardens – Rand Realty in White Plains, I have developed a dedication to client service and satisfaction that is unsurpassed. I am up-to-date on all the real estate market trends. With a professional, yet friendly approach, I help my clients feel comfortable when buying or selling their next home. Professional Associations & Designations Hudson Gateway Multiple Listing Service Subscriber, Hudson Gateway Association of Realtors Member, New York State Association of Realtors Member, National Association of Realtors Member Community Involvement Member of the Rotary Club of Hartsdale - Greenburgh Education Pace University - Bachelor of Business Administration Testimonials I will never refer to Bosco as my realtor, he’s a trusted friend. I met Bosco 6 months after loosing my husband of 11 years. I have two daughter’s Jennifer and Kylie. I didn’t need this big house in Eastchester. The upkeep was just too much for me. Bosco helped me sell my home and I purchased a townhouse. It was important for me to keep my girls in the Eastchester school district. I will be forever grateful to my new friend. He still calls from time to time to check in on us. Thanks Bosco. Karen Schwartz You will not be disappointed with all the work that Ken aka Bosco does for his clients. I was able to sell my house very quickly with his knowledge of what sells a house. From the front door throughout the house he noted what had to be removed and changed. He understands what people want to see in purchasing a house. With his help I was able to sell my house for $15,000 over the asking price. You won't go wrong with Bosco looking out for you. I can't thank him enough. I learned a lot from him, he knows the business. I will be forever grateful. Helen Izzo My girlfriend and I were looking to relocate to Westchester. We were first-time homebuyers and Bosco helped us with every step of the process and helped us find our dream home. He made sure to understand what we wanted. He made himself available when we had questions. He is reliable, very knowledgeable, and a true professional. Debora Flores I had the great pleasure of working with Bosco this past winter-spring on my first home purchase. Prior to Bosco I had a bad experience with another realtor who was unfortunately very unresponsive, lacked effort and ultimately not helpful. Thankfully my wishes were answered when I met Bosco because he was the complete opposite. Bosco doesn't waste time, he's extremely on top of everything. When I expressed interest in a listing, he'd book a visit within 1-2 days of me highlighting my home. He understands how aggressive the Westchester market is; good homes were snatched quickly. Moreover, I work in Manhattan, so I could only see places late at night, 7:30pm onward. He didn't mind visiting listing with me late a night. He worked around my schedule, not his. Being a first-time buyer, I had no experience with all the complexities of co-ops. It was great working with Bosco because he knows so much. He sits on a co-op board himself, so he has first-hand knowledge of what co-op communities are looking for. He successfully guided me on all the paperwork I need to paint myself in the best light to have my offer accepted and achieve board approval. Bosco's super passionate about home buying and I think that's the type of realtor you need to successfully land a great home. His combined passion and experience makes him a great realtor in my opinion. He's my realtor for life now, because I know he'll provide the best service. Ben DiChiara Bosco is everything you would ever want in a real estate agent. Smart, personable, energetic, friendly, tireless in his pursuit, of your goal. He is dependable, reliable, and at your beck and call. What more could you want. I would use him again anytime and refer him to anyone. If I could give him more than 5 stars I would. Cecilia Cohen-Downes