“Genius is only a superior power of seeing.”
John Ruskin, famed art and social critic
“I not only use all the brains that I have, but
all that I can borrow.”
“Only those who are asleep make
Ingvar Kamprad, founder of IDEA
“Can we afford it?” That’s the first thought that comes to mind when
shopping for your next dream home. Fortunately it’s an easy
question to answer if you consider your lifestyle, financial goals,
expenses and mortgage eligibility.
There’s more to life then just paying the mortgage and other living
expenses.Hobbies, entertainment, vacations, family adventures, and
charitable causes are also important.Don’t be house poor.Think of
your “lifestyle” as another bill you must pay—to yourself.
Your new home is not just a place to live. It’s also an investment.Make
sure it fits with your overall investment plan,which may also include
retirement savings, education funds, emergency cash, and more.
The mortgage isn’t your only home expense.You must also calculate
insurance, utilities, taxes,maintenance and other costs.
Amenities, such as a pool, can turn your home into an oasis. But, you
must be prepared for the upkeep costs.
If you’re buying an older home, expect repair and maintenance costs
to be higher.
Your mortgage eligibility is determined by your current income,
debt level, employment history, and credit rating. Lenders use this
information combined with estimates of your new home property
taxes and heating/cooling expenses to determine the largest
mortgage they can offer you.
Be careful. Since lendersmakemoney based on interest on the total
mortgage amount, they naturally want to get you approved for the
highest amount possible.Remember that although youmay qualify for
a $400,000mortgage, youmay not want that level of debt. It will
depend on your lifestyle, financial goals and estimated home expenses.
Home affordability is like a jigsaw puzzle.You need to put all the pieces
together to get a clear picture of howmuch home you can afford.
Need help? Call today.
It’s a timeless
principle in every household. It
accumulates. And accumulates!
Chances are, your basement, garage,
and closets are filled with things you
don’t want to have to pack and haul on
The solution? Have a “Moving Out” sale!
Expect a crowd. Bargain hunters love a
“Moving Out” sale even more than a
Garage Sale because they expect that
prices will be lower.
Once you realize that you won’t have to
deal with all that clutter on moving
day, you’ll love it too.