As you get ready to buy a new home, your thoughts are naturally filled with floor plans and decoration ideas, but money should be your top concern. Since your home is likely to be your biggest monthly payment, you want to be sure that you choose a home that is affordable for you. By thinking about the following things, you’ll be able to find a home that fits your needs and your budget.

Your Credit Score

Your credit score determines your interest rate, so it's best to know where you stand. Requesting a copy of your credit report can also help you find mistakes that are dragging your score down. If your score isn't great, you may want to spend some time building it up before you apply for a mortgage. Paying down debts and paying your bills on time are the best ways to improve your score.

Your Budget

Think about how much you can afford to spend on your home. The bank will approve you for an amount based on income and debt load, but that doesn't take monthly expenses like private school tuition into account. It's smarter to take control of your finances by determining your own budget rather than relying on one set by the bank.

Your Total Monthly Payment

Mortgage calculators can be misleading. Your total payment will include the mortgage payment, homeowners insurance, property taxes, and private mortgage insurance if you have to pay that. Some mortgage calculators estimate mortgage payments without factoring in the other things. If this is the type you’re using, you may be overestimating how much house you can afford.

It's easy to get excited when you think about your new home, but it's important to stay grounded in reality. When you make your decision carefully, you'll be happier with your purchase over time.

If you're looking for new homes in Macomb Township, or condominiums, contact Columbia Homes, let us help you find your dream home.