(Closed) Figuring out what to spend

posted 6 years ago in Home
Post # 3
2227 posts
Buzzing bee
  • Wedding: January 2012

We looked at what we could comfortably afford given our his salary. We know how much we spend already on food, clothes, school, leisure & investments. When we took those out of our our monthly equation, it gave us the answer to what we could afford.

Post # 4
13099 posts
Honey Beekeeper
  • Wedding: July 2010

We were on the same page.  We wnated our monthly payment to be equal to or less than we were paying each month in rent.  So we figured out what mortgage amount / home price that equated to and that was our budget.

Post # 6
161 posts
Blushing bee
  • Wedding: May 2012

General guideline is that your yearly “housing allowance” (mortgage, taxes, etc) should be around 20-30% of your yearly salary.  (depending on who gives the advice)  

We were on the same page.  We know that I will want to take some time off when we have children, so we decided to try to stick to 25% of ONE person’s yearly salary.  We pre-qualified for a $600,000 home, and have decided to stay under $300,000.  Since we live in the midwest, we’ll okay with that price range.  

Post # 7
3943 posts
Honey bee

We both wanted our mortgage to be right around our current rent, so we figured out a budget from there. That was actually the easiest part of house hunting for us hah

Post # 8
2894 posts
Sugar bee

@Mrs.KMM:  Same here.


We’re paying for our house what we would have been paying monthly to rent a 2 bed, 2 bath apartment in our area. So, about 30% of my annual income after taxes (that’s not including what he makes).We figured it was stupid to not buy if a mortgage would be as much as our rent.  It took a while to figure out what $ figure that was for homes given all the other factors like taxes, HOA, insurance, etc. We would have loved to spend more and get a slightly nicer home but we literally couldn’t justify the cost per month after seeing what the mortgage would break down to.


Post # 9
10288 posts
Sugar Beekeeper
  • Wedding: October 2011

We’re going to start seriously looking at houses in the next year or so but we’ve been browsing to see what’s out there for a few months now. He’d like to be closer to $200k but I’ve been focusing my search around the $250k (with a max $275k) mark. Even at $250k, our monthly mortgage payment will be roughly equal to what we’re paying in rent so I’d personally rather get a nicer/larger home for a price that we’re comfortable spending every month than make sacrifices just to save a couple hundred bucks. Ultimately, it will come down to the house we fall in love with and I know he’ll budge on his personal budget for the perfect place.

As for how we decided what we were comfortable spending, it’s simple. We wanted our payment to be equal to or less than our current rent since it’s an amount that we’re used to. Thankfully we live in a very expensive condo community so our rent is equivalent to most peoples mortgages in our area. My aunt, who’s a real estate agent, said that the fact that we already spend so much on our housing will look good on our mortgage application since it proves we can and have paid it for so many years. 

Post # 10
192 posts
Blushing bee
  • Wedding: October 2010

@Mrs.KMM:  We are doing the same – currently  home shopping now!

Post # 11
7312 posts
Busy Beekeeper
  • Wedding: October 2011 - Bed & Breakfast

We went about things a bit differently, I think. We knew the area we wanted to be in, looked at the cost for homes there that met our criteria, and then figured out the minimum amount that we would have to spend to buy into that area. At that point we looked at our savings to assure that we would have the 20% downpayment, all closing costs, and a 6 month emergency fund in the bank before we started looking. And only then did we look at monthly payments because we wanted to make sure we were not getting in over our heads. But yeah, it was more a question of “how much do we have to spend to buy into this area” and “do we have the cash on hand to make it happen while still having a healthy cushion”.

Post # 12
484 posts
Helper bee
  • Wedding: July 2010

We are looking at homes seriously too. We have put in an offer on 2 homes so far – it is a crazy process! But my hubby and I started out in different price ranges (him wanting to spend more). Getting ready to submit another offer – we will see where this goes! Ahh!

Post # 13
2142 posts
Buzzing bee
  • Wedding: August 2010

We already owned a home when we were searching for our new house so we knew what we were comfortable spending and increasing our monthly mortgage + escrow payment to.

I looked in the higher range thinking that I will be able to negotiate lower. My husband was more conservative and only looked in the lower end. He was also very strict on price/SF! He wanted to be below $70-75/sf I think and was adamant about it. Maddening at times! 🙂

At the end we came in much lower than both of our numbers BUT it allowed for all the gut renovation we wanted to do to the house.

So that’s definitely something to consider as well.

Post # 15
6661 posts
Bee Keeper
  • Wedding: May 2010

We only had so much for a DP, so it wasn’t the price range we disagreed on. When it came to making an offer, we definitely had differing opinions on what to put on the table. Because my Darling Husband doesn’t negotiate, he always just pays the asking price for everything. So he watned to do this with our home and it took a TON of convincing for me to get him to agree to offer something lower. We butted heads twice since after we put in the initial offer the sellers countered with a much higher number and my Darling Husband wanted to just accept it, but I finally talked him off the ledge and we compromised and ended up getting the home.

Post # 16
5670 posts
Bee Keeper
  • Wedding: August 2010

We sat down and made a budget of every household cost. I asked my parents to help us since we didn’t even think about a lot of things that went into running a house. Once you had a really good mock budget, the only variables are usually the mortgage and taxes, therefore you can sort of back into those amounts by figuring out what you have left with take home pay and how much you would like to pay for a mortgage and how much you would like to put into savings.

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