You’d suppose this would be an obvious crimson flag, however it’s a home-buying mistake people make all of the time. They say, “sure, this residence cost a lot more than what I had planned, but it’s so perfect, it’s the one!! It’s just gonna be a bigger mortgage, not a big deal.”
It is a big deal! That’s a horrific idea. Taking up a greater loan than you may have the funds for is like dropping an atomic bomb in your finances. You’ll wipe out all of your other financial goals and struggle simply to pay the utility bills.
Before you start looking at homes that you cannot afford, write down a list of needs and wants. It does not mean you cannot get all of your wants, but it is important to make sure you are being realistic about what you can afford.
For starters, a house payment ought to by no means price greater than 25% of your take-home pay. That consists of principal, interest, homeowners insurance, property taxes and depending on your situation, Private Mortgage Insurance (PMI) and Homeowner Association (HOA)costs.
Do not make a mistake that can potentially harm your finances, get the right representation to guide you through the home buying process. Do not feel disappointed, you can still find the perfect home.
Give us a call and let’s find you the perfect home!