By SaleCore on 11/10/2021
Making the decision to purchase a home is a big and exciting step. The next most important step is to determine how much you can and should realistically spend. The amount is dependent on several factors that include, but are not limited to, your income, credit score, and lifestyle. Because housing is expensive and the biggest line item in the monthly budget for a majority of households, it is not a decision to be made lightly. It is also important to know that when you are shopping for a mortgage, lenders may pre-qualify you for a loan amount higher than you expect and moreover, than you should use. Although there are some financial rules of thumb when it comes to affordability, remember it does not account for personal circumstances. During this process, be cognizant of the following questions: How much is too much? What if we spend too much and become house poor? What if we don’t spend enough and regret our decision?