by Erika Mehlhaff
For countless Americans, owning a home is a dream come true. Because one of the most popular months to buy a new house is June, it is when we observe National Homeownership Month. President Bill Clinton and his Administration created a weeklong observance in June 1995 with the goal of increasing homeownership across the country; and in 2002, President George W. Bush expanded the observance to the entire month.
Buying a new home is a great way to celebrate National Homeownership Month. That said, buying a house is a big decision with a lot of considerations; it is important to be prepared when you take the step to buy a home. If you want to buy a house, the main thing to consider is the level of financial responsibility and all the costs required to maintain a home; understanding how to budget for a new home purchase is key.
Buying a house is an achievable goal, but when it comes to buying a house, what you can buy and what you can afford can be very different. No one wants to be “house-poor,” so budgeting before buying a new house is important. Setting a budget to buy a house involves more than calculating a monthly mortgage payment, as your professional real estate agent will help you understand.
According to the Investopedia article How to Set a Budget for Buying Your First Home, “One of the easiest ways to calculate your homebuying budget is the 28% rule, which dictates that your mortgage shouldn’t be more than 28% of your gross income each month. The Federal Housing Administration (FHA) is a bit more generous, allowing consumers to spend as much as 31% of their gross income on a mortgage.” What difference does the mortgage payment amount make? Well, since homeownership involves several other costs, from homeowners’ insurance to property taxes to upkeep/maintenance expenses, those things are where the rest of the budget will be spent.
If you’re thinking about buying a home during National Homeownership Month this year, budgeting is your first step. If you are interested in homeownership across Texas, especially in the capital city of Austin and the local surrounding area, your best next step is to consult a professional real estate agent like those at WEICHERT, REALTORS® – Barton Harris & Co. The knowledgeable group of real estate experts at this Austin, Texas-based real estate agency offers the guidance you need for navigating the current market. Contact WEICHERT, REALTORS® – Barton Harris & Co. to find out more about the local real estate market and how to proceed with your search for a new home.
| OTHER RESOURCES
June is National Homeownership Month National Association of Real Estate Brokers https://www.nareb.com/june-is-national-homeownership-month/ Austin Housing Market: Prices, Trends, Forecast 2023 Norada Real Estate Investments https://www.noradarealestate.com/blog/austin-real-estate-market/ NATIONAL HOMEOWNERSHIP MONTH National Day Calendar |
