- Identify the maximum mortgage payment (including property taxes & Insurance) that you are comfortable making before you begin to meet with Lenders to get pre-approved. Consider your current housing expense and whether you have monies left over each month and are able to save.
- Identify how much you can spend vs. how much you want to spend on housing
- Remember, you are qualified using your gross monthly income, but you must live on your net monthly income
- Only your minimum monthly installment/revolving debt is used to qualify you yet your personal budget will include utilities, food, day care, auto maintenance, etc.
- Work on eliminating revolving debt with a goal in mind to only charge what you can pay off each month
- Put your $’s to work – calculate just how much you are paying monthly in credit card interest
- Educate yourself
- Plan for future expenses which must include the unexpected
- Pay yourself 1st! Save and pay cash for all planned purchases
- Track your spending (every cent) for 3D-days to see where your monies are going
- Non-discretionary expenses- housing, auto loans, credit card payments, student loans, day care, etc.
- Non-discretionary expenses with variables – groceries, clothing, hygiene, etc.
- Discretionary expenses – cable TV, lattes, movies, eating out, getting your nails done, etc.
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