home buying part 2

Real Estate Agent with Andrew Lowell Broker 00898265

The lender will not consider large expenses like college tuition, weddings for your children, or luxury vacations. Likewise, the lender will not ask you about your hobbies or your plans to purchase new furniture. Nevertheless, these are important considerations when you want to buy a home, because they impact the amount of money that you can spend on housing while still maintaining your lifestyle.

Prepare a budget ahead of time that will help you determine how much you can and want to spend on your mortgage payment each month. Unless you plan to change your lifestyle, you must have an accurate understanding of your financial habits. Often people buy a home as a result of a life change. Such changes are usually accompanied by expected changes in lifestyle and spending habits. Anticipate those changes and how much you will have available for your monthly mortgage payment.

Comments (2)

Jim Frimmer
HomeSmart Realty West - San Diego, CA
Realtor & CDPE, Mission Valley specialist

I know a couple who so overspent on their home that they had no money left to buy furniture and were just barely able to pay for the expense and loan on their matching his and her Corvettes. Every time I went over there, they were still sleeping on the floor, eating on the floor, watching television on the floor, etc. I quit going to see them, instead inviting them to go out to eat with me.

Best wishes for health, happiness, peace, and prosperity in 2009.

Dec 27, 2008 03:17 PM
Russel Ray, San Diego Business & Marketing Consultant & Photographer
Russel Ray - San Diego State University, CA

You said that nasty word "budget." I figure if the governments, banks, insurance companies, and the automakers can't budget, what hope is there for the average homeowner? Oh, wait. Half of them are in foreclosure because they didn't know how to budget. It's a vicious circle.

Best wishes for health, happiness, peace, and prosperity in 2009.

Dec 29, 2008 09:26 PM