Steps To Homeownership

How much can you afford

​We believe this is the question that will ultimately determine and guide your entire home buying experience. In today’s world “keeping up with the Joneses” is more prevalent than ever. More and more our happiness is becoming defined by what things make other people happy. We don’t fully understand what creating our own happiness means. We think that because someone is happy having a big home, a nice car, and tons of toys that in turn will make us happy as well no matter what the cost. So we strain our financial situation for an image that is created out of someone else’s happiness. But the truth is that more and more people are miserable and unhappy. In January 2020 Capital One produced an article  that stated that 58% of Americans feel that their finances control their life.  

Don’t add to the stress of the home buying process by stretching yourself beyond your means. According to Google the average interest rate for Mortgage Loans in Louisiana are 3.2% (March 2021). On a $250,000.00 loan the average monthly payment would be $1,081.00 per month with 100% financing. This does not include Private Mortgage Insurance (PMI) or any escrowed insurance such as Homeowner’s Insurance or Flood Insurance if needed. 

Don’t be afraid to start small, sell, and move a couple of times. We know we all want the home of a lifetime to create tons of memories in. But those memories could be better created without a financial strain.   

Figure out what you can afford and stick to it. No matter what the bank tells you they think you can afford. 

The next blog post will help you define whether Buying or Building is more suited for you.