Buying a home can sometimes be an emotional, scary, confusing and just generally overwhelming process. Buyers sometimes suffer from what we’ll call home buyers’ paralysis, where they have already looked at dozens of homes and have been given many different options, yet still can’t seem to come to a solid decision. Usually, the reason why buyers hesitate to go ahead and take the plunge has something to do with money.
Do you suffer from a fear of spending too much? Lenders will loan you as much money as you are able to borrow. Real estate agents will often suggest that you choose a bigger, better home so that you won’t need to trade up in a few years. However, stretching to buy the most home you can possibly afford is not always the best way to go. If your income is stable and very unlikely to change in the next few years, and if you are absolutely certain that your salary will rise, then maybe you should go ahead. But life is full of surprises, and large surprise expenses may come up just when you least expect them. If your instincts are telling you not to stretch yourself too thin when it comes to buying a home, you should probably listen to your inner voice. Have an honest talk with you real estate agent and ask them to show you less expensive homes. Buying a house that is slightly below your means is never a bad idea, especially if it has all the basic features you are looking for in your ideal home anyway.
Many financial advisers will tell their clients to budget about 25% of their income for housing in order to position them to build reserves for savings, investments, home improvements, emergencies and dozens of other reasons. That’s almost six percent less than lenders will allow you to borrow. Imagine what you could do with that extra six percent. It’s a win-win situation, because not only will you have a house, you will also have more funds to do other things as well.
If you are planning to buy a home, let The Incorvaia Team make the process as easy as possible for you. Call us at 440-879-7130 today!
