By Wayne Brady, Sales Representative, Honest Abe Crossville
In planning for a new wood home, it’s important to create a budget that allows for construction and considers future maintenance. That means asking yourself some realistic questions and answering them honestly.
If you require a loan to complete your home project, you'll want to calculate your debt-to-income (DTI) ratio. This takes your monthly financial obligations like house payment, car loan, charge cards, etc. (not utilities, food, entertainment) and divides the total by your monthly income. The final number should not exceed 33-36 percent of the cost of the home you are planning to build. Your monthly house payment should not exceed 25 percent of your stable monthly income.
At Honest Abe we're experienced at helping you balance what you want and what you can afford. It's out job to make the budgeting process a little less scary.