Home Buying & Mortgage Guide
Your comprehensive resource for navigating the home buying process with confidence
The Home Buying Journey
Buying a home is one of the most significant financial decisions you'll make. This guide walks you through the process step by step, from determining how much you can afford to understanding mortgage options and calculating your monthly payments.
1. Determining What You Can Afford
Before you start house hunting, understand your budget. Use mortgage calculators to determine what monthly payment you can comfortably afford based on your income and expenses.
Affordability Rules:
- 28% Rule: Housing costs shouldn't exceed 28% of gross monthly income
- 36% Rule: Total debt payments shouldn't exceed 36% of gross income
- Down Payment: Typically 5-20% of the home price
- Emergency Fund: Maintain 3-6 months of expenses after purchase
2. Understanding Mortgage Types
Different mortgage types suit different situations. Learn the pros and cons of each option.
Common Mortgage Types:
- Fixed-Rate: Interest rate stays the same for the entire loan term (15, 20, or 30 years)
- Adjustable-Rate (ARM): Rate changes periodically based on market conditions
- FHA Loans: Government-backed loans with lower down payment requirements
- VA Loans: Zero down payment loans for military veterans
3. Down Payments & Closing Costs
Beyond the down payment, you'll need funds for closing costs, inspections, and moving expenses.
Typical Costs:
- Down Payment: 5-20% of purchase price
- Closing Costs: 2-5% of loan amount
- Home Inspection: $300-$500
- Appraisal: $300-$600
- Moving Expenses: Variable
4. The Home Buying Process
- Get Pre-Approved: Know your budget before house hunting
- Find a Real Estate Agent: Get expert guidance
- House Hunt: View properties within your budget
- Make an Offer: Submit a competitive offer
- Home Inspection: Identify any issues
- Finalize Mortgage: Lock in your rate and complete paperwork
- Close the Deal: Sign documents and get your keys!
Home Buying Calculators
Use these calculators to plan your home purchase:
Mortgage Calculator
Calculate your monthly mortgage payment, total payment, and total interest.
Mortgage Calculator (UK)
Calculate monthly mortgage payments for UK properties with UK-specific calculations.
Loan Repayment Calculator
Calculate monthly payments, total interest, and repayment schedule for personal loans, auto loans, and more.