The First Thing You Need to Do to Get Ready to Buy a House Welcome to the first edition of Home Economics! If you’re reading this, there’s a pretttty good chance you’re in the market to buy a home for the first time. You’re probably wondering: “Where do I even begin?”
We’re glad you’re here to find out. This six-week newsletter series is meant to jumpstart your homebuying process; guide you through the ups and downs of credit, mortgages, and home shopping; and make all those confusing words you’ve never heard of before, well, less confusing. You got this! 
THE LESSON Pencils down! Here’s what you need to know this week.
You were wondering where to begin, right? Definitely start with a thorough review of your current budget. Doing so will give you an accurate snapshot of your financial picture, including the money you have coming in, going out, and what’s leftover. Understanding your budget will empower you, sure, but down the line, it’ll give you the framework you need to determine (a) whether you can afford a home and (b) how much you can comfortably spend on housing.
A budget worksheet can guide you through this. There are plenty of free ones available, but we particularly like this Annual Budget template in Google Sheets. Getting a clear picture of your finances is an all-important first step. Creating this budget will expose any areas that might need your attention — like building up your emergency fund — before you take on a mortgage. Plus, once you’re ready to buy a home, you’ll be able to speak candidly with your lender about your financial situation.
Once you have a handle on your monthly expenses, ask yourself what can be cut out. It’s important to remember that budgeting (and saving money) isn’t about depriving yourself — it’s about allocating your funds, and spending money in a way that aligns with your values. Your dream home is likely one of those values.
“The best budgeting advice I've ever received is to cut out the expenses you don't need or don't care about so you can put your money towards the things you value most,” says Lauren Bringle, an accredited financial counselor with Self Financial, a company that aims to help people build their credit and savings.
HOMEWORK Try your best to complete both assignments before next week.
To think about: Sit with your thoughts and feelings around budgeting. Is your heart rate increasing? Are the numbers you’re looking at disappointing you? You’re going to be thinking a lot about money for the next few months, so you’ll want to get comfortable with it. How do you do that, exactly? Try to pinpoint what about budgeting is causing you distress. Write it down on a piece of paper, then make a promise to yourself that you won’t let whatever is on the paper stop you from working toward your goal of homeownership.
RAISE YOUR HAND We're answering questions from our readers and followers.
What does a mortgage broker do? Are they the same as a loan officer? —An @ApartmentTherapy Instagram follower
Written by Brittany Anas / Edited by Madeline Bilis Follow Us
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