How much should you spend on a home?🔑

Hey there, future homeowners in Knoxville!

Wondering about the magic number you should spend on your dream home? Let's talk about "debt" but don't worry, I'm talking about the good kind!

You might have come across the 28/36 rule when it comes to figuring out your home budget, but let's break it down together.

First up, the Housing Expense Ratio: This rule advises that your monthly housing costs (think mortgage, property taxes, and homeowner's insurance) should ideally stay within 28% of your gross monthly income.

Next, we have the Debt-to-Income Ratio: This part of the rule suggests that all your total debt payments, including housing expenses, credit card debt, car loans, student loans, and any other obligations, should not surpass 36% of your gross monthly income.

Simple, right? But hang on, these are just guidelines, not hard-and-fast rules. We all have our unique financial situations, and what works for one might not suit another. Some folks feel comfortable dedicating more of their income to housing, while others prefer to keep a bit more wiggle room.

Remember, when deciding how much to spend on a home, you've got to consider various factors, like your savings goals, lifestyle, and other financial responsibilities. It's all about finding that perfect balance for you.

A solid starting point is to create a comprehensive budget. List out all your expenses, savings objectives, and sources of income. Doing this will give you a much clearer picture of what you can comfortably afford without breaking a sweat.

Feeling a tad overwhelmed with all the numbers and calculations? No worries at all! That's where I come in!

If you're considering buying a home and want to get a better grasp on what it means for your budget, just shoot me a message. We'll work together to navigate this exciting step in your home-buying journey.

Let's find you the perfect place to call home without losing sleep over finances. Can't wait to chat with you soon! 🏡😊