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How to Use a Balance Sheet to Get Ready for Homeownership
Balance sheet
If you’re thinking about buying a home, one of the smartest moves you can make is getting a clear picture of your finances.
A balance sheet is a simple tool that shows exactly where you stand. It helps you understand how much money you have, how much you owe, and what your net worth is. Whether you’re buying in 6 months or planning ahead for next year, a balance sheet gives you the confidence to set a realistic budget and prepare for your down payment.
Below, we’ll walk you through a balance sheet template you can use to organize your finances.
💡 What Is a Balance Sheet?
A balance sheet is simply a snapshot of:
✅ Your Assets (what you own)
✅ Your Liabilities (what you owe)
✅ Your Net Worth (the difference between the two)
When you put it all on one page, it’s much easier to see where you can improve—like paying down credit cards or saving more for a down payment.
Balance Sheet Template
Use this template as your starting point. Just fill in your amounts in each category.
🟢 Assets
| Assets | Amount |
|---|---|
| Checking/Savings | $______ |
| Investments | $______ |
| Retirement Accounts | $______ |
| Other Assets (car, etc.) | $______ |
| Total Assets | $______ |
Tip:
Assets are everything you own that has value. Be sure to include your savings accounts, investment accounts, retirement funds, and any major possessions like a vehicle.
🔴 Liabilities
| Liabilities | Amount |
|---|---|
| Credit Card Debt | $______ |
| Auto Loan | $______ |
| Student Loans | $______ |
| Other Debts | $______ |
| Total Liabilities | $______ |
Tip:
Liabilities are debts or obligations you still have to pay off.
Net Worth
| Net Worth | (Assets – Liabilities) |
This is the number that shows your financial health at a glance. Even if it’s negative, don’t panic—many people start out this way, especially with student loans or a recent car purchase. The goal is to grow your net worth over time.
Why Does Net Worth Matter When Buying a Home?
Lenders look closely at your assets and liabilities to decide:
-
How much you can afford to borrow
-
Your down payment capability
-
Your debt-to-income ratio
Having a clear balance sheet can also help you:
✅ See if you have enough saved for your down payment and closing costs
✅ Identify debts you might want to pay down before applying
✅ Set a savings goal if you plan to buy in 6–12 months
Contact me today and I can help you navigate your way to affording a home.
Joanne Bacourt
Realtor® | CENTURY 21
📞 Phone: (407) 502-9189
🌐 Website: www.Joanne.Bacourt.com
✉️ Email: Joanne.Bacourt1@gmail.com
