Because of rising home prices, many homebuyers are forcibly purchasing
homes they cannot afford. While many are able to handle the mortgage
payments, they are unable to keep up with utilities and other household
expenses. There are ways that you can avoid being “house broke.” Before
applying for a home loan, it is wise to consult a mortgage professional
and determine how much you can realistically afford to spend on a new
home.
Live Within Your Means
To receive the most enjoyment from owning a home, it is essential to
live within your means. Sadly, many people splurge on new homes. When
this occurs, you must either find a way to generate extra cash or downside
to a smaller home.
Then again, some homebuyers do not fully understand how much money it
takes to run a household. However, it is important to remember that
bigger homes require more electricity and so forth. Take this into
consideration before buying a new home. If you can afford the mortgage payment,
but have little disposable cash for utilities and other unexpected
expenses, it may be wise to select a less expensive home.
Take Advantage of Mortgage Calculators
Various mortgage lenders offer online mortgage calculators to give
future homebuyers an idea of future mortgage payments. These calculators
are not exact. Most do not calculate taxes and insurances. If using a
mortgage calculator, simply input home price, interest rate, and loan
term. Instantly, the calculator will provide an estimated monthly payment.
Usually, taxes and insurance are about an extra $200 to $250.
Use a Reputable Mortgage Broker
Try using one of ABC Loan Guide's
Recommended California Mortgage Lenders.
Due to steady rises in home prices, many mortgage companies and lenders
will approve homebuyers for loans that do not fit into their budget.
Purchasing a home that you cannot afford creates many problems,
especially if you are a first time home buyer. Some lenders will advise clients
wisely. On the other hand, there are lenders who have a practice of
persuading homebuyers to purchase homes that are way beyond their means.
If a mortgage broker or loan company appears too pushy, deny their
offer.
View our recommended California Mortgage Lenders online. Also, view our recommended sources for a Free Credit Report online.
