So many people get financed for a lot more than they really can afford. In this article I hope to show you some reasons why you need to be careful with the amount you finance.
So many people go in and fill out an application in hopes of getting the financing for their dream home. To your surprise you are over qualified and you get approved for much more than you applied for. You have to be careful in this scenario. You may be tempted but you don't have to take the entire amount.
Very many people get approved for a lot more than they really can afford. They look at the monthly payment and immediately assume they can afford it. What they forget about is all the other expenses that can be incurred during the time you own your home. Way too often people get so caught up in the beautiful new home that they can buy that they forget about everything else that needs to be budgeted for.
Don't think everything will be fine just because you own your own property now. What you need to do is get a mortgage calculator so you can be more realistic about what your actual expenses may be. Too many people try and stretch their finances way too far or they just aren't very good with their money and then they get themselves into trouble. Now you have to ask yourself a couple of questions.
Do You Have Money For Yourself
Even while you own your own home you still have to be able to enjoy yourself to a certain degree. So you have to make sure you have money every month in your budget to have some fun. You should be able to afford a family vacation at least once a year. You might want to go out for supper once in a while. You need to remember you may still have student loans to pay and almost always there are credit card bills.
How About Home Maintenance And Repairs
Maintenance issues are absolutely not included in your mortgage when you get it. You are always going to have utility bills where ever you live. These can easily add up to hundreds of dollars a month. Now you have to think about lawnmowers, landscaping and regular maintenance. Some small things may be able to wait but many need immediate attention.
To live happily you have to make sure you know you're spending habits. You have to know how much debt you can carry. Remember if you just came from renting and you usually live pay check to pay check you might have to break some old habits. You want to enjoy your new home so if you find yourself stressed from the beginning then maybe you're getting in too deep.
Dale Mazurek
About the author: Dale has had to make the long journey back from bad credit. He is the owner of the website http://stcajo.ecreditdirectory.com/ which can get you fitted to the best credit cards for your needs. He is also the owner of two very popular blogs which can be seen at http://creditneeds.blogspot.com/ and http://relationshiptidbits.blogspot.com/
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