Mewborn Team Real Estate Consultants: CoastalLuxurySanDiego.com

February 22nd, 2010

5 Home Buyer Mistakes That Could Cost You a Bundle – Day 3

Categories: Buyers

Yesterday, we talked about getting pre-approval.  After being approved, and starting your home search:

Know how much you can afford
If the housing crisis proved anything, it’s that just because a lender says you can afford something, it doesn’t necessarily mean you can.  No one can be responsible for your finances but you. To avoid this mistake, create a budget, and try to stick to it.  A good rule of thumb is to devote no more than a third of your monthly household income to housing costs (which include mortgage principal, interest, taxes, and insurance).

In addition to your monthly budget, be sure to keep in mind that there are closing costs, appraisal fees, homeowner’s insurance, utilities, and repairs, and maintenance.  Keep in mind these expenses before you commit to more than you can afford.

Tags: Buyers

Posted by Mike and Amy Mewborn//