Wednesday, May 4, 2011
Finding Your First Home at a Price You can Afford
“Buying your first home is one of the biggest life decisions you will ever make and you want to ensure you are both financially and emotionally prepared,” said Kavita Joshi, director, Client Strategies, RBC. “Your first step should be to determine how much you can afford while still maintaining your chosen lifestyle.”
Here are some tips for getting started:
• Know how much you can afford – before beginning your house search in earnest, take time to review down payment options, household income, current debt, estimated monthly housing–related costs and closing costs. You can visit the RBC online calculator to help determine how much you can afford (www.rbcroyalbank.com/cgi–bin/mortgage/tools/howmuch/afford.pl).
• Work with a budget – budgeting and setting a maximum amount on how much you are willing to spend are key to ensuring you can buy your first home and still live within your means. Online budgeting tools such as myFinanceTracker (www.rbcroyalbank.com/myfinancetracker) can help determine exactly where your money is going and how much you have to spend within the parameters you've set for yourself.
• Do your research – friends, family members and online websites can offer you helpful tips and personal advice. Also, consider reaching out to an RBC mortgage specialist (https://mortgage.rbc.com) who can give you insights into your finances.
For further budgeting tips and to join the discussion on purchasing your first home visit the RBC Facebook page at Facebook.com/rbcroyalbank.