Here’s a case for buying a less expensive home than you secretly want.

According to the U.S. Bureau of Labor Statistics, the average American spends approximately 37% of his or her income on housing. Notably, the top 20 percentile earners spend only 29.9% of their income, while the bottom 20% pay 39.9%. So what do high earners know that you don’t know?

If you have a little less money invested in housing, you’ll have more money to do other things, like: 

• Invest more in your 401K or Roth IRAs.
• Pay extra on your mortgage so one day you’ll be mortgage-free.
• Save money to buy another property. Rent out the first home for passive income as renters make your mortgage payment for you.
• Build or add to an emergency fund.
• Make improvements without adding more debt or tapping into equity.
• Reduce debt.

Conventional loan guidelines from Hud.gov suggest that the average homebuyer spend no more than 29% of his or her monthly gross income on housing. If your gross monthly income is $4,167, spend no more than $1,208, which should include property taxes and home insurance.

What if you have current debts? The Consumer Financial Protection Bureau recommends that your debt-to-income (DTI) ratio be no larger than 43% to secure a qualified mortgage - one the lender has done the due diligence on your ability to repay the loan according to government standards. However, many lenders aren’t comfortable with more than 36% DTI and may charge you higher interest rates accordingly.

Don’t call them decorators! Interior designers are trained, degreed and licensed professionals who do far more than choose curtains. Their job is to transform the interior of your home to make it more functional and beautiful. If your home could use more space, better traffic flow, better lighting, or an additional room, an interior designer is the one to call.

They save you money. Interior designers can buy appliances, cabinetry, flooring, fabric, furniture and accessories that are sold “to the trade” only. While they charge for their time and/or add a mark up to each item they choose for you, you’ll pay about the same for unique wow-factor results as you would for big-box, off-the-shelf items. 

They save you time. The interior designer learns your lifestyle, personal preferences and space concerns. They know the latest products and design solutions, and if they don’t have an immediate answer, they do the research so you don’t have to.

They help you prevent mistakes. An interior design is like a symphony – every detail should compliment everything else in utility and beauty. Designers give you what you want, but they also expand your tastes to try new ideas. 

They have resources. Many design solutions aren’t available at retail. Designers have their own go-to teams of contractors, upholsterers, artisans and craftspeople, so they can customize solutions for you.

Most designers offer a free consultation to help you decide if you’ll work well together. Contact the American Society of Interior Designers for more information.

You’re almost done! All that’s left to do is to pack up and move in to your first real home. Here are a few tips that will make your moving day as a new homeowner easier.

1. Sort your belongings. Moving can be more expensive when you cart along items you don’t really want or need. A great way to do it is to sort and pack at the same time. Think in terms of three piles – keep, donate, trash. Trash the trash and drop the donations off at the first opportunity. Put your “keep” pile into moving boxes labeled by room.
2. Plan your storage options. Closets, attics and cabinets can fill up quickly, especially if you’re downsizing. Where will the out-of-season sports gear go? What about holiday decorations? How are you setting up your kitchen? What goes in the garage besides tools? Where will you put valuables? 
3. Plan your car trip. Whether you’re moving across the country or near the same neighborhood, pack your car or rental with necessities, including first aid, drinks, and snacks. Each family member should choose their favorite items to bring, like blankets, pillows, games, books, and a change of clothes – just in case you don’t have time to unpack those items the first day in your new home.
4. Meet your neighbors. If possible, introduce yourselves to your neighbors beforehand to let them know you’re moving in. You’ll have a greater sense of familiarity and belonging on moving day.

If you really spend a lot of time in your home office, make it inviting!  Start with the spare bedroom with a double closet.  Get a good trim carpenter who can convert it to a reading nook built to fit a twin sized mattress that provides comfortable seating, an extra bed for guests, and drawers for storage below. On the left side of the picture,  note the French door used in place of a solid door.  Maybe you "vant to be alone" but a closed door of any kind signals your visitor to please knock!  I also like the neutral tone with white woodwork for a look that is clean and classy!