uying a home is an such as retirement or when you
emotional decision and most need to pay for the astronomical
people try to get the best tuition fees charged by colleges.
the possible can afford. That Given these goals, just barely
being said, one must be careful qualifying for a mortgage may be
when squeezing into a mortgage. a bad first step.
Be Careful When Squeezing into a Assume you spend what seems like
Mortgage endless weekends hunting for that
perfect house. Finally, you find
When it comes to certain foods, the home of your dreams, but it
there is an old saying that one’s is a bit more than you planned to
eyes can big bigger than the pay. You will probably start
belly. The same goes for real trying to create a budget that
estate. When shopping for real will let you squeeze into the
estate, the natural inclination home. The key, of course, is the
is to look for the best home you monthly mortgage payment.
can afford. While this makes
sense on many fronts, the Once you do your budgeting, you
questions becomes what exactly discover the only way you can get
does afford mean in this context? into the home is with an interest
only loan. Even then, it is going
to be a bit tight on a monthly
The point of moving into a new basis. You fully realize that the
home is twofold. First, you want equity you build on the home will
an enjoyable place to live. solely be in the form of
Second, you want to make a good appreciation, but you decide to
investment that is going to do it anyway because you really
payoff for you when you sell or like the home. You get the loan,
need money at some later date close the deal and move into your
new home. stagnant. Second, you are not
really enjoying living there
Now, fast forward six months. The because you are most likely
red hot real estate market has stressed out over finances. Heck,
cooled off. In fact, appreciation you are probably having trouble
rates are stagnant. You also sleeping. In short, you have
really have to scrimp and cut failed to meet your two goals of
corners to make your mortgage finding an enjoyable place to
payment. In another two month, live and making a good
you will have to somehow come up investment.
with $3,000 for the property
taxes. When purchasing a home, be very
careful about buying at a price
You have the home of your dreams, level above what you can
but at what cost? It is not a comfortably afford. It can lead
good investment because you are to a lot of stress and sleepless
only paying the interest on your nights.
loan and appreciation rates are
About the Author:
Dan Lewis is with http://www.gwhomeloans.com - San Diego mortgage brokers providing San Diego home loans.
Read more articles by:
Dave Lewis
Article Source: www.iSnare.com 
