So you want to buy a home. The real estate market is in favor of seller’s, meaning there are more buyers in the market than sellers. In times like these, it is common for buyers to have to bid higher than usual to beat out others and get the homes they want, or for sellers to sell their homes a little higher than they’re worth. So, a great way to get the home you want and still stay on budget is by using cost estimator tools. For more information and to hear our suggestions, keep on reading!
So long story short, a cost estimator tool is a resource you can use to get a better idea of what different things will cost in your home buying journey. This will help you while you’re saving for things like your closing costs. Now, before you start calculating, it is important to know how things like your closing costs are calculated.
HOW MANY COSTS ARE THERE WHEN YOU ARE BUYING A HOME?
Before you start your home buying journey, knowing what costs come with the process is important if you don’t want to go into it blindsided. Now, of course your realtor will give you a good idea of everything you’re obligated to pay to get into that house. Some of those costs will be the down payment, the closing costs (research everything that’s included in those closing costs), and moving expenses.
CALCULATION TOOLS AND USING YOUR REALTOR
There are tons of calculation tools on the internet, such as nerdwallet. The first step to doing this calculation is figuring out your budget, how much in monthly expenses that your household can afford (make sure to include all forms of income), and being honest about how much you spend on things to increase accuracy. Many financial advisors suggest you do not exceed 28% of your gross income in monthly expenses, so keep this in mind when calculating. You can also use your realtor to help you crunch the numbers. They are an expert in the business that can give you insight on that and help you get pre-approved. Whether you decide to choose a calculation tool on the internet, use your realtor, or do so manually, this will be the best way to get a good idea on what your budget is and ultimately go into the homebuying process knowing what expenses will come your way.