Other times, “you might not have a clear picture of exactly what the financial picture entails,” says Ericson. “Maybe you’re assuming a best-case scenario that there will be no financial hiccups, or your lender didn’t adequately communicate the exact closing costs or the monthly payment.” “But the cost of buying a house you shouldn’t is far higher than the cost of leaving it behind if you’re worried about the payment,” says Todd Huettner, founder of Huettner Capital (Denver), citing worst-case scenarios such as foreclosure, bankruptcy, and decimated credit. He adds that buyers should never buy a home based on the assumption that if it doesn’t work out financially, they can just sell it. What if you can’t sell it when you want? Or you, now the owner, are stuck in a buyer’s market, where there are too many homes for sale but not enough buyers? You could end up living in that unaffordable home for longer than you’d anticipated and could end up in financial trouble down the road. Don’t let your emotions take over. Think logically, and think long term. Most of all, get financially prepared ahead of time and know your budget before you begin the home search and home-buying process. This will save you a lot of time, energy, and potential heartache.
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