5 Things to Consider Before Getting A Mortgage
How Much Do You Spend on Bills Per Month?
Consider all of the bills you already pay for in a month. Most people have a phone bill, a car loan, insurance payments, internet bills, etc. Before you start thinking about a mortgage, we recommend taking a deep dive into your current financial situation. Understand exactly how much money you spend on bills per month and then consider that when budgeting your mortgage.
Should You Use the Maximum Amount, You Are Approved For?
Buyers love hearing that they’ve been approved for a large mortgage; however, it’s important for them to review their financial situation before spending it all. Remember, bills can pile up, and unforeseen circumstances can arise at any moment. The more money you have put away in an emergency fund, the better prepared you will be to weather any unanticipated expense. If you’re interested in a home that falls slightly out of your internal budget, review and adjust your spending habits or search for supplemental income.
Save More Than You Think You Need
You can never be too Even if you think you’ve set yourself up well financially, do what you can to save more. Unfortunately, many homeowners lose out on the home of their dreams because of an unexpected financial roadblock. Even seemingly small and inconsequential payments can add up and leave you unable to place a qualifying offer on the house. As a general rule of thumb, don’t stop saving until you’ve secured your property.
Be Specific About What You Want
Prevent buyer’s remorse! Understand exactly what you want before you place an offer. Discover what you’re willing to compromise on and what is a complete necessity. If you’re working with a developer like Phoenix Homes, you can secure a personalized home for your family’s needs.
Think Long Term
It’s important to think long term. Keeping the future in mind will allow you to make an educated decision throughout the home search process. How long do you plan on staying in your next home – if it’s a short-term venture, maybe you should consider spending less than what you’ve pre-approved for.
Remember, buying a home should be a fun experience, not a stressful one. With helpful tools, like the Mortgage Calculator, you’ll learn how to prepare financially for your future home. For more information, feel free to contact Phoenix Homes today!