Whether you a first time buyer, or have bought a home before then you have many things to think about. If you are thinking of buying a home one of the first things you need to do is talk to a mortgage professional about getting pre-approved. What you need to do before you sit down and talk to him is to figure out what kind of payment you can afford.
Don't bury yourself with a huge payment where you can't take vacations, or can't save for retirement, or can't fund your kids education. Ideally you payment should be no more than 28 -35% of your income. There are too many people losing their homes in bankruptcy because they pushed the upper limits of buying a home. I am going to digress here for a minute.
Please live within your means. The sooner you able to admit to yourself, your family, and friends that you can't buy the huge house, and that you aren't the big spender. The sooner you get started on the right path to financial freedom.
You will be able to save more, live and enjoy life better if it isn't always about bigger and better.
Can you tell the difference between your friend's great couch or one that was on clearance? A stainless steel grill doesn't cook any better than a $250 grill. It is the same with a home. A bigger home means more up keep, more taxes, more utility bills. It is all ok if you can afford it, but if you are buried in debt don't do it.
The mortgage guy will tell you that the bank will loan you more money but you need to determine for yourself and your family what payment you can afford. The bank or the lender will usually say you can borrow more. Be upfront and honest with the mortgage person so they know all the facts. Next blog will be on not paying origination fees or discount fees.
For more on mortgages or search homes in Michigan go to my website www.russravary.com
My website also has great area for Michigan things to do. May the rain bring you many beautiful flowers and a lawn with no weeds.
Russ Ravary
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