In the excitement of buying a home, particularly your first home, it can be easy to overstep your budget. Before you start shopping, it’s a good idea to draw some realistic conclusions regarding what you can really afford—and then make sure you don’t get carried away. What You Are Approved For Versus What You Can Afford When you walk into a mortgage broker or lender’s office, you may find yourself surprised at how much you are approved for. But before you get excited, remember that how much a bank approves you for isn’t necessarily an amount you can realistically afford. While the bank reviews your credit and finances, they don’t know details such as how much money you spend on entertainment or groceries each week. Sit down and do a realistic budget, looking at how much you spend monthly and where you might be able to cut corners. Then decide what you can really afford each month—and don’t forget to add in the cost of property taxes and insurance. Look Into The Future Your budget today may be very different in the future, so it’s a good idea to think ahead. One of the biggest impacts on finances is the […]
Read More