Home Buying Budget Checklist: Don’t Overlook These Hidden Costs!

Understanding Your Home Buying Budget – The Key to Making a Smart Investment

Buying a home is one of the biggest financial decisions you’ll ever make, and understanding your budget is the foundation of a smart purchase. While a bank might approve you for a certain loan amount, that doesn’t necessarily mean it’s the right number for you. There are many additional costs that come with homeownership, and overlooking them can lead to financial stress.

Here’s how to get your budget right so you can enjoy your home without feeling stretched too thin.

1. Look Beyond the Mortgage

Your mortgage payment is only part of the equation. Be sure to account for:

• Property Taxes & Insurance – These can vary widely based on location and home value.
• Utilities – Electricity, gas, water, internet, cable all add up.
• Maintenance & Repairs – Experts recommend budgeting 3-5% of your home’s value annually.
• Miscellaneous– Maintenance, Daycare, dog walking etc.

By considering these costs upfront, you’ll avoid surprises down the road.

2. Avoid Becoming "House Poor"

It’s tempting to spend the full amount your lender approves, but doing so can leave little room for unexpected expenses or the lifestyle you enjoy. Make sure you have enough left over for savings, travel, dining out, and other personal expenses.

3. Crunch the Numbers

Take a detailed look at your finances to determine a comfortable home budget. If you’re unsure where to start, work with a real estate professional (like me!) who can help you break down the numbers. The goal is to find a home you can comfortably afford—not just today, but for years to come.

4. Tailor Your Home Search

Once you’ve established your ideal budget, the home search becomes much easier. We’ll focus only on properties that fit within your financial comfort zone, ensuring that you can enjoy your dream home without unnecessary stress.

Final Thought

A home should be a source of happiness, not financial worry. By taking a numbers-first approach, you’ll make a wise investment that allows you to truly enjoy homeownership. If you need help crunching the numbers, don’t hesitate to reach out—I’m here to help!

Next steps:
(1) To learn how to up-size your home, check out my free "Move & Grow Method" guide. 
(2): Follow me on my Instagram @trevorthiessen for more tips on real estate, and how we can help.