First-Time Home Buyers Guide: Part 11 of 15
This Isn't Yoga
There’s nothing better than a good stretch after sitting for a few hours straight, right? Or after you’ve woken up for a nice sleep… Or had an amazing yoga session…
Stretching your body can feel great and be great for you. But stretching your budget when buying a house? Not so much. Stretching how much you spend on a house will neither feel great or be great for you in the long run. (Probably not even in the short run.)
But it’s tempting for many buyers to do. It’s too easy to just look at houses a little bit higher in price instead of choosing the best one you can in your price range.
This is something that happens in every price range. A $1,500,000 buyer will be equally as tempted to stretch to $1,750,000, as a $150,000 buyer is to stretch to $175,000. It’s all relative, but everyone tends to want a little more than they can afford.
It doesn’t help that mortgage approvals are often for more than someone should probably spend. So pay close attention to not only how much you’re approved to spend, but also how much it will cost you per month! That’s probably the more important number to be concerned with because the price of a house is only part of the equation. Taxes vary from one house to another; two houses with equal prices may cost you entirely different amounts per month.
Very few people ever regret spending less than they could have, but almost everyone who spends more than they should have will end up regretting it. And it can be more than regret; it can lead to financial stresses that cause lots of problems. So, set a cap on how much you can and will spend per month, and stick to that amount or lower, and you’ll be fine.