When people are browsing Napa houses for sale, it’s easy for them to get excited about the thought of buying the absolute best home they can afford.  Unfortunately, the situation is generally more complicated than that, and “what they can afford” is often quite a bit lower than they originally thought.

If you’re in the market for a home, it’s important to truly understand your budget.  This will help you select a home that fits your needs and what you can afford to pay from month to month.  Plus, doing a little homework ahead of time will greatly increase the chances of a bank signing off on your mortgage. If they think you’re overspending, they won’t risk the loan.

Here are some major budgetary aspects to consider while you’re looking at Napa houses for sale.

Five Key Budgetary Concerns to Keep in Mind Before Buying a Napa House

1 – Your take-home income.

Of course, we start with your income.  Be certain you’re looking at your net take-home, after taxes and SSI and any other contribution-based systems like retirement plans.

2 – Your existing debt and other obligations.

How much are you paying towards debt and similar obligations?  That won’t go away when buying a house.  Of course, if you were willing to wait a bit, you might be able to pay down your debt to lower your monthly costs.

3 – Your necessary living expenses.

How much are you currently paying month-to-month on items such as food, clothing, utilities, and vehicle maintenance?  Use a website like Best places to compare the cost of living between your current residence and Napa, to see how your living expenses are likely to change.

4 – Add in fees associated with home-buying.

You’re going to have to pay property taxes, homeowner’s insurance, and probably mortgage insurance as well.  Your Napa realtor should be able to give you ballpark figures on those expenses.

Also, know ahead of time if you’re buying a home that’s part of a Homeowner’s Association.  If so, that’ll be an additional monthly or yearly fee.

5 – Will the home require any additional work?

Before committing, be sure to get a detailed inspection, so you know if you’ll need to pay for upgrades or repairs.

Connie & Jamie Are Here

Compiling this information should give you a realistic budget for buying Napa houses for sale.  For more help, please don’t hesitate to contact Connie & Jamie!