Afford the Right House for You: Consider These 3 ThingsInk Well Mag November 5, 2016 0 COMMENTS
Buying a house (which means getting a mortgage) is a big financial responsibility. While you can get pre-approved for a home loan, this doesn’t necessarily mean that you can comfortably afford the payments. Many people become house poor when they set their own criteria, especially when deciding what kind of house they can afford.
When deciding on a property, it is advisable to know what your lender thinks you can afford. Then, mortgage companies in Phoenix suggest setting reasonable criteria by assessing both your finances and preferences.
You should able to pay a mortgage with your source of income. Many homeowners find relief when they can rely on two incomes to pay the bills. If you’re the only one paying for the mortgage, be sure that your income can cover it, says an expert from Primary Residential Mortgage, Inc. You may also want to consider the stability of your job or if you could easily find another good-paying job, should you lose what you have now.
Consider your current debt expenses and the other expenses that you haven’t generated yet. Many lenders suggest that all your debts should not exceed 36% of your gross income. You will also need to think about your plans in buying a new car, truck, or any other big-ticket items. You should also consider education expenses for kids or a family vacation that is a tradition every year.
The way you live your life matters when affording a house. If you don’t mind tightening the budget or sacrificing your shopping habit every month, things are going to be okay. If you, however, cannot live without a fancy coffee every morning, there might be a problem. It is always better to budget your money first and think about the splurges you can give up.
It is never advisable to choose the house that’s beyond your reach, even if you expect a raise or a promotion. Think about your current financial situation to make a sound decision. You can also ask your lender to help you decide the type of house and the size of mortgage that is right for you.