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. 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.
HOW TO GAIN AN ADVANTAGE:
139
Powered by FlippingBook