Budget for a Home

If buying a home is your priority, it's time to buckle down on your budget. Although Sierra Pacific's mortgage rates are affordable, nothing is more important than organizing your finances before you sign on the dotted line.
 
You don't need a degree in accounting to make the planning process work in your favor. Ultimately, it's a matter of creating a simple budget, including your income, savings, and debt-reduction goals. In addition to benefiting your own finances, these are items that will benefit you when you're talking to a lender.

How do you start saving? The easiest way is to set up an automatic transfer of funds, perhaps a few hundred dollars a month, from your checking account into savings. And what about debt reduction? There are numerous approaches you can take, but the key is that you're keeping credit card and other debt balances as low as possible—again, something that lenders will want to see prior to a purchase.

Remember, this isn't just a mortgage payment—you have to budget for property taxes, maintenance, utilities, and a whole list of other items. The bottom line for all of these steps comes down to your debt-to-income (DTI) ratio: the minimum monthly payments on your debts compared to your monthly gross income. That's important since most loan products have a maximum allowable DTI, but it's also ensuring you're buying a house you can afford.

  • We have a loan program that meets your financial needs.

  • We know that only one thing really matters to you - being approved for your loan.

  • And that’s why you will think we’re number one.

  • Contact a member of our team today.