We’re bringing you a special blog series from The Accidental Banker. Orv Kimbrough offers a smart, caring perspective on simplifying home ownership, and we are so happy to share his story and lessons with you. This series is part of a paid partnership with Rising Bank, a division of Midwest BankCentre, and we do receive a commission if you take advantage of their services.
It’s happened more times than I can count: being looked over and dismissed. Success was never a word used to describe me. Take the 15 that I scored on my ACT. Even so, as far back as I can remember I had the kernel of faith and the heart of someone obsessed with achievement. I never focused on success, because success is just sustained achievement.
And achievement is about results.
When I was in middle school, I would wake up at 5 in the morning on heavy snow days and knock on as many doors as I could before daybreak to shovel snow for money. I wondered how many doors I could knock on. It’s that same hustle, along with educating myself, that is the key to any achievement of mine.
In the last blog, we learned the importance of knowing your credit score before applying for a home loan. Today, I’ll cover another fundamental step to achieve your dream of owning a home.
Home Ownership: Can I Afford it?
One of my biggest achievements was purchasing my first home with my wife. Before that, we had to ask ourselves – can we really afford it?
If you’re asking yourself the same question, there’s a lot to consider. In addition to your mortgage, consider all of your other monthly expenses:
- Must-Haves: What “must-haves” like utility bills, property taxes, homeowner’s insurance, food and medications are part of your monthly budget?
- Should-Haves: There are “should-haves” like an emergency fund for unexpected expenses.
- Nice-to-Haves: Don’t forget the “nice to haves” like cable TV access, occasional meals out, or maybe after school programs for your children.
The general rule of thumb is that your mortgage payment should not exceed more than 28 percent of your monthly take home pay.
With that in mind, if your take home pay is $3,000 per month, then your monthly mortgage payment (which is the total of interest and principal) should not be more than $840. Learn more by checking out our online free homeownership education courses.
A home of one’s own means so much to so many. It’s where you kick off your shoes and get comfortable. It’s where your children will flourish, and your garden will grow. It’s where your kitchen table overflows with love and laughter as your family gathers for holidays and special occasions.
If you’re ready to own your own home, let Rising Bank help you achieve this dream. Learn more here about Mortgages by Rising Bank or get pre-approved today!