Red Wing, Minnesota
610 Main St.
Red Wing, MN 55066
(651) 388-4745

3 Aspects to Consider When Budgeting to Buy a Home July 26, 2018

Red Wing, Goodhue
3 Aspects to Consider When Budgeting to Buy a Home, Red Wing, Minnesota

Preparing to buy a home requires time and dedication. It’s likely the biggest purchase you’ll ever make and a significant financial investment. Many homeowners make the mistake of not budgeting properly before a purchase and find that keeping up with monthly mortgage payments and related costs is more difficult than they anticipated. It’s more than just saving up for a down payment, so keep the tips below in mind if you’re preparing to make a purchase.

3 Budgeting Tips for Preparing to Buy a Home

1. Know How Much You Can Afford

The foundation of your budget is knowing you can afford your mortgage payments without going broke. As a rule of thumb, multiply your annual estimated salary (ex., $100,000) by three and four. The results ($300,000–$400,000) will give you a range of what priced home you can afford. You can also add up your monthly debts and required payments and multiply them by 25% to gauge what type of monthly mortgage payment you could afford if you buy a home.

2. Don’t Forget Property Tax & Insurance

buy-a-house-lawrence-realtyMany people land on a mortgage payment they feel comfortable with but are surprised when it suddenly jumps because of property taxes and homeowner’s insurance payments. Property taxes are taken by your local government based on their assumed value of your home, so the cost varies. Do research to figure out estimated taxes and insurance costs so you can get an accurate idea of the true amount of your monthly expenses.

3. Remember Homeowner Costs

When you buy a home, you inherit a variety of new responsibilities. As a renter, you may have been responsible for basic utilities. As a homeowner, you take on all expenses, ranging from sanitation and lawn care to random short- and long-term repairs. Even if a home is in great shape, anticipate possible expenses down the road so you know you’ll be financially prepared if they occur.


Lawrence Realty Inc. has helped residents of Red Wing, MN, with real estate transactions since 1948. Whether you’re looking to sell or buy a home, purchase an investment property, or find your dream home, their real estate agents are committed to helping you achieve the best results. They’ll work with you every step of the way so you can be confident you’re making a sound purchase that will pay off over the years. Call (651) 388-4745 today to speak with a real estate agent, and visit their website and Facebook page to learn more about the agency.

Other Announcements, Events and Deals from Lawrence Realty
1404 Norwood Street, Red Wing MN, Offered by Brady Lawrence of LAWRENCE REALTY, INC., Red Wing, Minnesota
Beautiful home located in a quiet neighborhood, easy walking distance to parks, Red Wing Athletic Field and Splashpad.  Entertain family and guests in the large, spacious more
OPEN HOUSE REMINDER!  Saturday, November 10th from 11:00am to 1:00pm in Red Wing, MN!, Red Wing, Minnesota
November 10, 2018 11:00AM - November 10, 2018 1:00PM
Make sure you don’t forget about this OPEN HOUSE in Red Wing, MN!  Take time on Saturday, November 10th from 11:00am to 1:00pm to visit your host, Tom Brown of LAWRENCE more
Add to Calendar
OPEN HOUSE REMINDER: Saturday, Nov. 10th  1:00-4:00pm  N4457-1115th St. in Prescott, WI, Red Wing, Minnesota
November 10, 2018 1:00PM - November 10, 2018 4:00PM
DON’T FORGET ABOUT THIS OPEN HOUSE!  From 1:00-4:00 pm on Saturday, November 10th, Toni Zimmermann of LAWRENCE REALTY, INC. will be your hostess for the OPEN HOUSE at more
Add to Calendar
3 Questions to Ask Before You Buy a Home, Red Wing, Minnesota
Your budget is in order, you have a real estate agent, and know what you’re looking for—you’re ready to buy a home. It’s an exciting time, but it’s important to remember that there’ more
OPEN HOUSE!  Saturday, November 10th in Red Wing,  MN!, Red Wing, Minnesota
November 10, 2018 11:00AM - November 10, 2018 1:00PM
A finely crafted, well preserved Dutch Colonial located within steps of downtown Red Wing, MN! Stop in at the OPEN HOUSE this Saturday, November 10th from 11:00am-1:00pm. more
Add to Calendar