When shopping for your first house, there are many things to consider – where do you want to live, what type of house do you want, what architectural design do you want, how many bedrooms and bathrooms do you need, do you want a big yard or a small yard; the list is as long as your mind can imagine. But somewhere at the top of most home buyer’s lists, is how much will my mortgage payment be, and how much can I afford.

And while most people who are looking into their second or third home have an idea of what a house really costs, it can be hard for first time home buyers to truly gauge the cost of a house. The mortgage payments can be determined with a simple online calculator – that part is easy. But what about utilities? What about unexpected repairs and yard maintenance? Furnishing additional space for those moving into a larger house from an apartment? These added expenses need to be accounted for when determining your budget.

I had a client who came to me last month interested in purchasing a house in either South Lyon or Brighton. This client was referred to me by his Realtor, because she said I could give him a good idea of exactly what he could afford. Now, that meant something very different to him than it did to me and his Realtor. After an open and honest conversation, he decided that he did not want to purchase a house at the top of his prequalified budget, because he was not sure he would be able to handle all of the extra expenses. He wanted to keep the lifestyle he was living in his apartment, and to do so his payments would need to be smaller than his rent, to adjust for these other expenses.

Now, this is not to say that that will be the case with everyone. But it is important to allow a qualified mortgage specialist have an in-depth conversation with you about the costs of home ownership, especially if you will be a first time home buyer.

If you have any questions about buying a home, or if you would like to discuss your budget, please contact me. If you have anything to add for first time home buyers, please leave a comment.