In today’s economy, everyone is out for themselves. Every company, every worker, the negative and greedy mindset has sunk it and doesn’t plan on leaving. Because of this, it is important that you don’t get yourself in over your head financially, especially when it comes to buying a home. Just because you qualify for more doesn’t mean that you should utilize the entire loan given. Make sure to leave enough wiggle room in the budget, take home value changes into consideration and weigh the costs of operating a bigger house.
- If there are rooms in the house that you don’t use, you still have to pay utilities and higher property taxes for that space.
- If you buy a house that is smaller or less expensive, your mortgage payments will be lower or you can pay the house off in 15 years instead of 30.
- If you are putting too much of your money into your home, you will be house poor and won’t be able to afford much of anything else.
“Before you do, you may want to consider buying less home than you can afford. We know that sounds like we are crushing your dreams, but there are some valid reasons you should use this strategy.”