That’s the best way I can say: don’t overspend…but also, don’t buy too small either. Your lender will give you a loan limit, based on your debt-to-income ratio. But you don’t have to spend up to your limit. You must decide what your comfort limit is, and ask that crucial question,“Can I afford to live in this house?”If you overspend that, you are at risk in 3 ways:
You risk by not having any margin in your finances. What if one family member looses a job, or gets a decrease in pay or employment? Again, only you can decide your risk tolerance.
You risk other financial goals when you overspend on a home. Over time, those unmet goals, whether they be travel, education, or future savings, take a toll on your quality of life. Be certain.
On the other hand…sometimes being too conservative is not the right choice. Buying a house that won’t meet your needs in the next 5 years also puts you at risk. When you are cramped for space and need to sell, you won’t have the equity to cover the costs.
If you are in a position in which you are certain of increasing income over the next few years, you may want to consider buying a larger home at the top of your price range. The choice is, of course, yours, and the risks need to be assessed. If you buy a house that is going to be too small when you have an addition to the family next year, or that isn’t in your preferred school district, for instance, that will be a problem. Sometimes it’s the right decision to stretch.(always consult a licensed financial adviser)
Use Your Realtor®!A good professional is key to navigating the lending rapids. Your real estate agent will have trusted lending professionals that they will recommend. Our team of professionals, whether lenders, title attorneys or home improvement, are interested in the best possible experience for you.
Matt has been a licensed Real Estate Broker since 2003 and with American AllStar Realty since 2005. Matt lives and loves real estate, especially assisting Buyers and Sellers in residential transactions.
I have always held a vision of personal real estate service that would far exceed customer expectations. Myself and my team of agents are able to negotiate competently on a clients' behalf and consistently handle even the most complex property transactions with ease. This teamwork, attention to detail and serving the customer with an above-and-beyond philosophy, has helped American AllStar Realty succeed in spite of a sometimes-adverse economy. A solid reputation has been built through hard work, integrity and a strong code of ethics.
I am a hardworking professional, focused on delivering real results. You truly want someone in your corner when it comes to any real estate transaction.
If you are considering selling your home, here are some tips to help y
"I cannot think of anything but very positive things to say about the personal assistance Matt provides to customers. He is never pushy, always professional and polite, sometimes even funny. (ha ha) We had a stressful situation and we were not sure if it would be resolved. Matt knew just how to walk the line and gave us the best advise and comfort. He held the transaction together and was honestly concerned for both parties which we appreciated. I would highly recommend him to anyone interested in selling or purchasing a home. You will not be disappointed."