What's the quickest way to turn the American Dream into a nightmare? Buy more house than your CURRENT budget affords. Think a high car note for five years is tough? Try a mortgage payment you can't afford for the next 360 months.
Working with first-time buyers I hear this logic often. Sure we only make 2,000 a month now but next year I will be due for a fat raise. Once we are earning 3,300 a month this note will be a breeze. Like a cynical old billy goat I ask the obvious question...
What happens if you don't get that raise? Prior to real estate I had experience working for both the state and in the private sector. Nothing is more uncertain than a promised raise. Budgets get cut, bosses get fired, departments get slashed, but your sky-high mortgage payment stays the same.
Want stress in your life that an ice-cold beer can't solve? Take on more home than you can afford. Budget busting mortgages means no money for family vacations, extra-curricular activities, or Santa Claus.
After that crazy mortgage payment clears there will be less money in your account than the special effects budget for a Youtube video. Are you ready for 30 years worth of the pauper lifestyle? If so, sign that offer and pass the pinto beans.
Buy a home you can easily afford. When that raise does come through either add on or upgrade to a better home then. Your bank account will thank you.