If you’re considering purchasing a home, you’ve probably already determined how much you have available for a down payment, what an ideal mortgage would be, and how much home you can afford based on your monthly income. But, what about your lifestyle?
It's important to consider how much wiggle room you need to leave in your home budget to enjoy life. We've put together a list of 6 life factors to consider when buying a home (especially if you're a first-time homebuyer).
Want to know exactly what you can afford before you start searching for a home? You're in luck! Use our FREE Home Purchase Qualifier to find out
#1 Travel
Is travel an important goal in your life? Think about the travel goals you have for yourself:
- Where do you want to travel to?
- What do you want to see?
- How long are your ideal trips?
- How much money would you need on an annual basis for travel?
- Is this already factored into your budget? Do you need to cut back on travel to fund your monthly mortgage payment/home expenses?
While there are no right or wrong answers, it’s a smart idea to reflect on your priorities.
#2 Green Thumb?
Do you love gardening, being outside, and all things landscaping? If you purchase a home with a lawn and don’t enjoy the upkeep, you could be looking at extra expenses for landscape maintenance.
It's a good idea to factor hobbies and services into your monthly budget to see if the numbers still work out.
#3 Pool Time
Have you always dreamed of having a pool in your backyard? Before the dream becomes a reality, try to add up the costs of pool maintenance and servicing, energy, and insurance (along with liability if you have small children) and you may be better off heading to the neighborhood swimming hole. Pools are FUN, but they come with a lot of work. You'll want to factor time and money into your future plans when buying a home with a pool.
#4 Children
Are you planning to start a family in the next few years? If so, don't just consider the amount of mortgage you can afford under your current expenses. Factor in things such as daycare costs and then determine what your cash flow will look like. With that said, you may have to adjust the amount of home you are looking to purchase.
#5 Entertainment
If dining out, going to concerts and sporting events are part of your lifestyle, you made need to also factor this into your budget.
#6 Retirement
If you’re in your 20s, you should try to save 10% of your income; in your 30s, you should be saving 15%. If you need to cut back on your retirement savings to make a home purchase work, think hard about when you’ll be able to get back to your ideal contribution levels and how much you may be losing out on during that time.
Remember, even though home ownership can help build long-term wealth, it’s very important to maintain retirement savings for future security.
Questions about the mortgage process? Feel free to reach out to us at any time. We are happy to answer all of your questions. And, if you're a first-time homebuyer visit our website here for more information on everything you need to know to get into your dream home.
