Financial Jargon Simplified: Home Buying

Financial Jargon Simplified: Home Buying

Financial jargon can be confusing to navigate, for both the ‘new-to-managing-my-finances’, and even those who are more experienced at it. If you’ve ever felt like you need a healthy dose of ‘just the facts’, you’re in luck.

It’s time to feel empowered to own your financial conversations. Brushing up on these terms can help you make more informed, confident decisions in your financial life – ultimately getting you to your goals faster and smarter.

Owning a home is a goal many people have. But when it comes to planning for your future dream place, it can be easy to get lost in the alphabet soup of how to buy a house , especially when you’re dealing with brand new terms like HOA, PMI, and so many more. Doing some “homework” early on to understand important jargon can help you feel ahead of the game when you begin the process of finding a home that you enjoy, and that works for your budget.

So what are the steps to buying a house? Typically, it starts with figuring out how much you can afford to pay each month. It’s important to know how much house you can afford so you feel comfortable with your monthly payment, and still have money left to meet other financial and life goals you have.

You’ll want to keep in mind that your total monthly housing cost will likely involve many elements, beyond just the mortgage. So in order to calculate “how much house you can afford” it’s key to explore what those additional elements might be, and how much they might cost. To better understand the total monthly cost of homeownership, you’ll want to get to know the terms below, which are all costs involved in home-ownership.

Home Buying Infographic - a full description of this infographic is available below

What Now?

Start thinking about what you can afford to pay for a house each month by taking a look at your current spending. Building a monthly budget, and getting a good handle on knowing where your money is going, are great places to start. If you’re ready to start saving, it might be a good time to consider opening a savings account dedicated to your down payment savings. Then check out this article on ways you can start preparing today to buy a home, even if you think your purchase is a few years away.

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