Buy Affordable Housing

In today's economy it is extremely important that a home buyer guard against buying more home than they can afford, especially if they encounter an emergency.   Before searching for a home in earnest, at least get pre-qualified.   Many times a lender will qualify a buyer for more home than they can afford.  When you get pre-qualified or pre-approved, be sure to request a Good Faith Estimate.  This report provides you the following estimates: closing cost, amount of cash to bring to the closing table and monthly mortgage payment amount.  When purchasing a home determine how much house updating and furniture changes you will be making.  Always remember, you will incur additional expenses that you did not allocate for.  Recommend, you have a 10% reserve fund over and above the expenses you have allocated for house and furniture updating.  Plus, be sure for the first year at least, you have a home warranty insurance policy, this will provide some protection against unexpected expenses.  When making plans to purchase a new home, it is extremely important to analysis your financial situation and be truthful with yourself.   If you do not do proper planning, at a later date you may be sorry homeowner.  Even with the best of planning, there are no guarantees a buyer will not encounter future financial problems.  At some point it time, you must move forward.