Our team sell a lot of homes, but what we really prides ourselves on is helping people buy homes they can actually afford
If you’re thinking bout buying a home, there are five signs that you might be buying one that you can’t afford:
1. Your purchase has some creative mortgage options attached. If you’re hearing and reading about a hodgepodge of mortgage terms you don’t understand, such as “balloon” or “interest only” or “arm loan,” it means your lender is getting very creative in order to get you into the home you want. They’re only being creative, though, because you can’t qualify for a traditional mortgage loan to buy that home, which is a red flag.
2. You have to use a down payment assistance program. After you buy the home, it’s going to eventually need some repairs. If you can’t save enough money now and you need a down payment assistance program in order to buy the home, it’s going to be very difficult to save money for other important items once you own the home.
3. You have just enough to cover the payment. If the monthly budget you need to pay for the home is tight, that’s not a good sign. If you’re finishing up some schooling or you’re anticipating a job promotion, then your situation is justifiable depending on how much risk you want to take. Like I mentioned in the previous point, though, there will be repair and maintenance issues you’ll need to take care of after you’ve bought the home, and you need to be able to pay for those kinds of things.
4. You have to borrow against your retirement account in order to buy the home. Taking funds out of your retirement account is definitely something you don’t want to do. Retirement is something you should look forward to, and if you strip your retirement account so you can buy a home, it will be that much more difficult to build that account back up.
5. You have a sinking feeling in your gut. Sometimes, you just have to trust your gut about this kind of thing. If you have a sinking feeling about your upcoming purchase, talk to your Realtor so they can assess the situation with you and potentially find you a home that you do feel good about. Our team specializes in this. Our goal is not just to sell you one home—it’s to sell you a home you can brag about for years to come. That’s not the reputation we have, and that’s not the reputation we want.
If you have any further questions about how we can get you into a house you can afford, give us a call.
Marcus Vanzant, Owner/Broker, REALTOR®
Bradenton Real Estate Expert