The option of whether or not to be house broke is solely based on a personal decision. Keep in mind that that getting approved for a mortgage doesn't necessarily mean that you can afford the monthly home loan payments. Besides, other factors constitutes a persons ability to make a payment. Here are some of the factors that can play a big role on whether you'll end up house poor or not.
Income: When you're seriously contemplating if you can pay your mortgage or not, you may want to ask yourself these questions: are you only relying on your income to pay the bills? Is your job considered stable? Can you easily find a job that offers the same pay or better? Do you have any back up plans in case you lose your job? See if you are financially stable first before you even apply for a loan. It's important that you try to build your savings first in case anything happens.
Lifestyle: Ask yourself if you're willing to have a lifestyle change in order to get your dream house. If living in a well secured but a bit secluded area works for you, then maybe applying for a backend ratio loan might work out well for you. However, if you can't live without having a double mocha frappuccino every day, then you might just want to play it safe and probably consider using a more conservative approach instead.
Personality: Every person is different, regardless of what income they have. Some people are just fine with knowing that they need to pay $3,000 each month for the next 15 years while others would most likely fret over the idea of that. The very prospect of refinancing your home is to be able to afford monthly home loan payments. It's all about your state of mind and your determination to payoff your loan. You have to remember that having a home loan is a financial responsbility that you need to prioritize for the duration of the loan.
Buying a home can be quite fulfilling. However, before you get yourself all caught up, you need to make sure that you are financially stable enough to support the addiditonal expenses like the maintenance and repair. While getting a mortgage is probably the best way to get a house, you need to think things through before getting a home loan.
Get professional advice from a legitimate mortgage broker to know more about the fees and other expenses that you need to pay in order to get a loan.<< Back to the list.
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