Can you really afford to buy that home ?

What kinds of home buyers buy that home?


In the more than 20 years that I have been representing only home buyers, I have had all kinds of home buyers.  Some ricbuy that homeh, some poor, some paying cash and some scraping together the down payment. Not all home buyers that buy can really afford to buy that home.


Although I liked all my homebuyer clients, not all were prudent home buyers.  Some bought more than they could afford. When homebuyers fall in love with a house, they will talk themselves into thinking they can afford to buy that home.


Sometimes their real estate agent will try to push buyers to buy that home which of course is typically a more expensive home.  Interview  and select your buyers agent carefully.


Just because the bank or mortgage person or realtor says you can qualify for a $350,000 home purchase does not mean you should do it.  What you can technically qualify for and what your comfort level is may be two different things.  Why stretch?


Can you really afford to buy that home?


A buyer who’s current rent is $1500 a month that has not been unable to save up the down payment, really cannot afford mortgage payments of $2200 a month.  Regardless of what the lender says.


Put a critical hat on and crunch the numbers. Would you still buy that home if your income was reduced?  Or you had to send a child to private school? Or if you had to get a new car?


If a home buyer is overly concerned about the taxes, the cost of insurance, the home owners fee or the utility bills, they probably need to trim the wish list and buy something that fits the budget.


Life happens and that promotion they were counting on may not come through. Then what?


This is not a lecture about what to buy…


If you have the bucks available and are not strapped for cash, than buy whatever you like.  I just see too many home buyers with eyes that want bigger and badder even when it does not make good financial sense to their wallet.


Buying above your means never ends well


Like the couple that came to town on borrowed money…the credit card.  They had set a budget for a home, but felt that they just had to have that bigger yard which was $50,000 more.  A year later they tried selling their home because they really could not afford it.


I had another couple who expected to have the closing costs scraped together by the closing date. They did not.  So, first they asked me to lend them my commission but ended up borrowing that portion from a relative.  So now they have a mortgage payment in addition to the payback on the borrowed money.


Not a smart way to start life in a new home.  Buying a home should be a happy occasion.


There are alway unexpected expenses that get in the way of good intentions. Figure out your comfort level and stick to it.  Besides, how big does the house really need to be?


For expert buyer representation with buyer agents that will stay within your budget, call Buyers Broker of Florida 407-539-1053

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