What buyers need to know before falling into a trap of purchasing beyond their means is that their means are not defined by the asking price of the home in question. Qualifying for funding is simply one thread in the larger tapestry of buying and owning a home. When your income qualifies you to spend much more than you had initially planned, it’s best to take careful stock of what your precise needs are lest you get trapped in an ever-growing financial dilemma. Here are three reasons to stick to your budget regardless of prompting by eager brokers and agents.
Value is not guaranteed to increase over time, even in the trendiest of neighborhoods. The real estate market is notoriously unstable, and getting approved for a loan you may have previously thought beyond your means could very well turn out to be a risky investment. Sticking to your budget will protect you from losing sight of your homebuying priorities and ultimately, equity.
Everything costs more in a bigger home — heating, cooling, water, and power all have the potential to skyrocket in a home that’s too large for your needs. Stick to your plan, avoid the big up-sell, and you’ve got a greater chance of creating a truly comfortable home.
Overspending could lead to under-saving, and even if additional space seems alluring, if it weakens your savings, it’s rarely worth it.
Stonebridge Mortgage Group can help you with your Reverse Mortgage, Real Estate Loan, and many other mortgage solutions. We serve the greater Portland area and are located in Gresham, Oregon. Call us today at 503.661.5580.