Know your numbers! The Internet includes a wealth
of online resources to assist you in going thru
the numbers when it comes to buying a home.
But sometimes you cannot see the forest for the
trees. So what I have here is a concise view of
of the numbers when buying a home.
If you want to review the buying process, click on
buying up top. Always sit down with a qualified
and competent individual and review your
situation before acting on the numbers.
Download the 3 tab spreadsheet (XLS format) which
is shown in the samples below.
You can also
download the file and then upload it to Google
Spreadsheet
at docs.google.com and use it online.
Download spreadsheet here
Note: You may need to save to your harddrive
first before being able to open the spreadsheet.
AFFORDABILITY SAMPLE
|
A |
Monthly Income |
Monthly |
Yearly |
|
1 |
James |
$4,000 |
$48,000 |
|
2 |
Teresa |
$5,000 |
$60,000 |
|
3 |
|
$0 |
$0 |
|
4 |
|
$0 |
$0 |
|
|
|
$9,000 |
$108,000 |
|
|
|
|
|
|
B |
Monthly Debt Expenses |
Monthly |
Yearly |
|
1 |
Property loans |
$0 |
$0 |
|
2 |
Car loans / leases |
$650 |
$7,800 |
|
3 |
Personal loans / Lines of credit |
$175 |
$2,100 |
|
4 |
Credit cards |
$80 |
$960 |
|
5 |
Student loans |
$0 |
$0 |
|
6 |
Other loans |
$110 |
$1,320 |
|
|
|
$1,015 |
$12,180 |
|
|
|
|
|
|
C |
Available Gross Income |
Monthly |
Yearly |
|
|
|
$7,985 |
$95,820 |
|
|
|
|
|
|
D |
Affordability |
Percentage |
Amount |
|
|
Recommended maximum total monthly debt
load as percentage of gross household income |
40.00% |
$3,600 |
|
|
Recommended maximum housing costs as percentage of gross household income |
32.00% |
$2,880 |
|
|
Available monthly debt available for household costs as percentage of gross household
income |
28.39% |
$2,555 |
|
|
Current monthly debt as percentage of gross household income |
11.28% |
|
|
|
As monthly debt (non housing costs) declines some homes will become more affordable |
|
|
MONTHLY
COST SAMPLE
|
Actual Household
Monthly Costs |
|
|
|
|
|
|
Item |
Amount |
Ref. Notes |
|
Mortgage Payment |
$1,954 |
1,2 |
|
Property Tax |
$325 |
|
|
Condominium Fee |
$0 |
|
|
Special Assessment |
$0 |
|
|
Heat |
$250 |
|
|
Total Actual Household Monthly Costs |
$2,529 |
3 |
|
Available Affordability |
$2,555 |
4 |
|
Available Household Monthly Cost minus Actual Household Monthly Cost |
$26 |
5 |
COSTS TO
BUY A HOME SAMPLE
|
A |
When Buying
A Home |
|
|
|
|
|
|
|
1 |
Up Front Costs |
|
|
|
|
Appraisal Fee |
$225
|
|
|
|
Deposit |
$10,000
|
|
|
|
Estoppel Certificate |
$0
|
|
|
|
Home Inspection |
$325
|
|
|
|
Water Quality Inspection |
$0
|
|
|
|
Other |
$0
|
|
|
|
|
Subtotal |
$10,550
|
|
|
|
|
|
|
2 |
On or Before Closing |
|
|
|
|
Land Transfer Fee |
$2,725
|
|
|
|
Lawyer's Fee |
$800
|
|
|
|
Property Insurance |
$750
|
|
|
|
Property Survey |
$0
|
|
|
|
Title Insurance |
$800
|
|
|
|
Moving Expense |
$1,350
|
|
|
|
Service Hook-up Fees |
$0
|
|
|
|
Other |
$0
|
|
|
|
|
Subtotal |
$6,425
|
|
|
|
|
|
|
3 |
Other Costs |
|
|
|
|
Cosmetic renovations |
$12,500
|
|
|
|
Structural renovations |
$0
|
|
|
|
General repairs |
$1,250
|
|
|
|
Appliances, Indoor equipment |
$5,000
|
|
|
|
Gardening equipment |
$0
|
|
|
|
Winter household equipment |
$0
|
|
|
|
Do-it-yourself equipment |
$650
|
|
|
|
|
Subtotal |
$19,400
|
|
|
|
|
|
|
4 |
Costs Subtotal |
|
|
|
|
|
All Costs Total ( 1 + 2 + 3 ) |
$36,375
|
|
|
|
|
|
|
5 |
Down Payment |
|
|
|
|
Down Payment |
$40,000
|
|
|
|
|
Down Payment Total ( 5 ) |
$40,000
|
|
|
|
|
|
|
6 |
Total Funds Required |
|
|
|
|
|
Grand Total ( 4 + 5 ) |
$76,375
|
|