One home buying mistake many home buyers make is over-extending themselves by buying a house too big!
Many people have lost their homes in the last few years because they over extended thenselves. So many first-time home buyers make the mistake of getting sucked into buying a house too big. Sometimes its peer pressure. Showing that they have "made" it. The buyers get a loan that stretches their budget, the first time home buyer bets on a future increase in income.
Yes so many people want to get into that bigger, more expensive home. Sure most people make more money as they get older. But taxes go up, insurance goes up, and there is always something to fix or repair in a house. Your mortgage is always going to be one of your most expensive payments in life. Don't let it ruin your life. Buy a Michigan home that fits your budget. One that you can afford to take vacations, one that you can afford to enjoy life.
So don't make this one home buying mistake that many home buyers make. Don't over -extend yourself.
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My Month of April quote:
"Sometimes the only way to get to the far shore is to lose sight of the shore you just left"
Russ Ravary
"helping make your move easier"
your local Metro Detroit Realtor helping clients like you sell and buy homes through out the entire Metro Detroit suburbs. I love showing and selling Oakland County and Livingston County Lake front homes too.
This is so true. So many first-time buyers probably should have scaled their home choices down a bit. Nice blog.
Thanks!
Great post Russ. One can never be reminded too often to live well-within one's means. Takes a huge amount of stress off of you when you aren't constantly having to worry about "where will the money come from" to take care of all unplanned expenses that seem to ALWAYS pop up!
I completely agree Russ. I overheard a teenager speaking to his parents telling them, if he can't afford a home or car later in life he'll just give it back to the bank. How incredibly sad.
Russ, if we could only look into the crystal ball or be a magician. For 4 years I sold new construction during the great market. These prices seemed very fair at the time. A lot of them are now in a desperate situation hanging onto their homes. Obviously I could not predict the future, but it makes me feel terrible that I helped them obtain their American dream to now loose it a few years later.
Russ, great post. It's why I always start a buyer conversation with two important questions:
1. How much are you paying for housing currently?
2. What's your budget for the new house payment?
I'm still amazed at how many buyers want to put what they want into terms of purchase price, not payment. When I press for a payment, many have not done a budget!
The easiest way to get screwed by a salesperson is to let the salesperson decide what you should buy. They'll almost always shoot high for the biggest commission.
Great post Russ; We all need to remember that we're not salesman...we're consultants and we should council our first time home buyer as to the dangers of over extending ourselves in a home purchase.
Russ, They need to buy the home that "knocks their socks off" but only if they can afford to replace those socks.
We have a responsibility to find out what they can afford with comfort and then find something that keeps them well within that zone.
Margaret
Russ, with that more expensive home comes more expensive bills. The gas goes up. The electric goes up, not to mention the points you made of the mortgage, taxes and insurance. It's best to buy smart and what you can afford and not worry about the neighbors.