10. You Just Can’t Afford It
Now here is a make-it-or-break-it type of deal: affordability. When push comes to shove, you need to be able to afford the house you want to buy. If you know in your gut that in the long run, it won’t be affordable, then please save yourself the trouble and say “no” — walk away, don’t look back, and find a home that you can afford. “There’s been that nagging thought that the house feels like a financial stretch, but you’ve convinced yourself you can make the mortgage payments. Even if it means skipping Tuesday night takeout or that weekend getaway in Vegas,” writes Ericson. “But then you realize that you’re one transmission issue or dishwasher breakdown away from being flat broke.” Obviously, the hope or goal is that you don’t get too far into the home search and home-buying process before realizing you can’t afford the home, but this still happens. Many buyers find the home of their dreams randomly, even if it’s outside their budget, and they believe that they will do whatever it takes to be able to afford it. But this can be a big mistake! 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.
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