Wednesday, December 10, 2014

Boston, MA – How much home can you afford?

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So you recently read the news that renting is now half as affordable as buying in the US and you are looking to purchase your first home in Boston, MA. Congratulations, that is a fantastic idea! Why continue to build your landlords equity when you could start building your own? Finding the perfect Boston, MA home may be easy, but, first you need to consider how much home you can afford.

Five year plan. It's not just about how much you make, but, about what you plan to do with it. Do your best to anticipate the next five years - do you foresee any future debt due to family, car loans, or the like? All of these will raise your debt-to-income ratio. Even if you can afford that mortgage now, life events can bring that ratio up. Do your best to map out what the next five years will bring and keep an emergency fund for the unexpected.

Other costs. Home ownership isn't just as simple as paying the mortgage. Other expenses will for sure pop up in the form of repairs, general maintenance, condo fees, and furnishing your new Boston, MA home. Make sure to also consider your property tax and home insurance costs on top of closing costs.

The more thorough you are with your budgeting, the more comfortable you will be when shopping for a home. When it does come time to search for that perfect Boston, MA home, please make sure to contact a Boston, MA real estate agent. I am always here should you have a question on a Boston, MA neighborhood such as South End, Fenway, Beacon Hill, or any other. I hope to speak with you soon!


Lucas Garofalo
Keller Williams Realty
(617) 861-3631
Lucas@LucasBostonHomes.com

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