Creating a Budget That Includes Your New Home

You may have to make several changes to your budget in order to buy a new home. The first change includes saving for a down payment, while the second change — a few months or years later — will include your new monthly mortgage payment (including the extra you want to pay each month to pay it off early) and savings for repairs and maintenance. A third budget might show how you plan to change your spending after your house is paid off.

If you do get into trouble and are facing foreclosure, beware of scam artists, often calling themselves mortgage consultants or foreclosure services, who offer to talk to your mortgage lender or intervene on your behalf to help you refinance.

Not only will they charge you an upfront fee for this “service,” they will often get the title to your home transferred to their company, pocket your fee, and then declare bankruptcy on your behalf.

Never let your mortgage get so far behind that your lender threatens foreclosure. You're much better off selling your house and moving to a smaller one that you can better afford long before your situation ever gets to this point.

WORKSHEET 17-2

A New-House Budget

Monthly Expense

Amount

Ways to Reduce/Eliminate

New Amount

Savings for down payment

$

N/A

$

Groceries and household items

$

$

Day care

$

$

Contributions

$

$

Savings

$

$

Rent on furniture or appliances

$

$

Entertainment/babysitting

$

$

Eating out

$

$

Rent or mortgage

$

$

Car payment or lease

$

$

Electric bill (average)

$

$

Gas bill (average)

$

$

Water bill

$

$

Sewer bill

$

$

Trash pick-up bill

$

$

Cable/DSL/satellite bill

$

$

Telephone bill

$

$

Cell phone bill

$

$

Bank charges

$

$

Haircuts/manicures/pedicures

$

$

Home equity loan

$

$

Other loan

$

$

Credit card or store-charge bill

$

$

Credit card or store-charge bill

$

$

Credit card or store-charge bill

$

$

Credit card or store-charge bill

$

$

Credit card or store-charge bill

$

$

Child support or alimony

$

$

Car maintenance

$

$

House maintenance

$

$

Auto insurance

$

$

Property taxes

$

$

Gifts

$

$

Events to attend

$

$

Clothing and shoes

$

$

Home insurance

$

$

Vehicle registration

$

$

Vacation

$

$

Club membership

$

$

Other:

$

$

Other:

$

$

Other:

$

$

TOTAL:

$

$

  1. Home
  2. Budgeting
  3. Changing Your Budget to Include a New House
  4. Creating a Budget That Includes Your New Home
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