Buying a Home: Tips on Budgeting For Homeownership


Buying a Home: Tips on Budgeting For Homeownership

Many think that buying a home consists of saving for the downpayment and closing costs. However, there is much more you need to budget and account for to make a smart purchase.

Here are a few tips to help you plan: 

  • The debt-to-income ratio is very important when shopping for a loan. What is it? It’s your monthly debt payment divided by your gross monthly income. The less debt you have the better the loan.
    • TIP: Try to get pre-approved prior to your search. Your MLO (mortgage loan officer) can assist you on how to reduce this number. 
  • A down payment is important but the type of loan usually dictates how much you need.
    • TIPS:
      • 20% down payment will not require you to have PMI (private mortgage insurance) which would be an additional monthly payment with the mortgage
      • For every $1000 down payment, your mortgage usually only reduces by $6/month
Buying a Home: Tips on Budgeting For Homeownership Alina Freyre Contributor Miami Moms Blog
Sample closing statement
  • Closing costs can be estimated between 2 and 5 percent. Once you are pre-approved and you know your target purchase price you will have a better idea. 
    • TIPS:
      • Request a pre-closing statement and negotiate the fees that state “services you can shop for”
      • Before you place a contract on a home, you can request closing costs from the seller. A good realtor can guide you here. 
  • Home inspection costs are a necessary evil when buying a home. The standard 4-point inspection will usually only run you approximately $150 but you do not want to skimp out on this.
    • TIP:
      • Spend a little more money to have the home completely inspected to avoid a larger expense once you purchase the home
  • Property taxes and homeowners insurance are added monthly expenses and most loans will require payment to be made into an escrow account.
    • TIPS:
      • You can shop out your homeowner’s insurance even if your MLO or bank offers your options
      • Property taxes will be reassessed when the sale of the home is complete. To estimate, multiply the purchase price by about 2% or the average county tax rate.

With these tips and an MLO and real estate agent you could be in your new home sooner than you think. 

Buying a Home: Tips on Budgeting For Homeownership Alina Freyre Contributor Miami Moms Blog


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Alina Freyre
Alina is a first-generation Cuban-American Miami native currently living in Coral Gables. She is a mother of 2 remarkable children and has been married to her best friend for 22 years. After spending 18 years in the medical industry, Alina decided to follow her passion of becoming a chef and attended Le Cordon Bleu to take her passion to the next level. She has since owned a catering company that became a bistro as well as authored a cookbook, The Diversified Table with a Latin Twist. Being a foodie that loves to patronize the different restaurants in Miami, she noticed there is an absence of good dessert bars in Miami…voilà, Whipped Sugar was born. Whipped Sugar specializes in Miami and Cuban flavored cookies, including a KETO line. With the heart of her home being the kitchen and the importance of building the best home life for her family Alina is also a real estate agent helping her clients buy a home, not just a house. For more information on Whipped Sugar go to