So you have a dream of buying your own Michigan home and you want to start as soon as possible. One of the first things you should do is to figure out what you can afford for a house payment.
Many home buyers across the nation failed this 1st tip over the last few years. Many Michigan home buyers are in foreclosure because they over bought. They are losing their homes they just bought a few years ago. They have a house payment they can't afford. Some of them were talked into a bigger house by a real estate agent, family member, or friends. Some let a mortgage loan officer tell them what they could afford. Some succumbed to peer pressure of buying the big Michigan home. Now they are in foreclosure. They couldn't afford the house, the taxes, or the upkeep of the house.
So take the time and sit down and figure out what you can afford for a house payment. Be sure to include taxes and insurance in the house payment. You have to pay them every year so include them. If you can only afford $1200 a month. Then stick to it. Don't let a real estate agent or mortgage person tell you can afford more.
It is your comfort level. The bottom line is do you want to keep the home or do you want to start over in 5 years. Figure out what you can afford. Then try saving or living without that money each money.
Let's say you say you think you can afford $2000 a month. If you live at home try putting away $2000 a month without using it. If you rent and your rent is $800 then put $1200 aside each month. Try this for 3 to 6 months. Then you will know whether your lifestyle would be affected by your new house payment. You will know that you can afford your new house.
For more Michigan home buyers tips, Metro Detroit Michigan real estate tips go to www.RussRavary.com or www.DetroitMichiganRealEstateHOmes.com
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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.
Thanks for this post. It is important advise for all home buyers.
My husband and I always prefered a house payment less than what the mortgage company said we could afford. I am happy that was our policy since I have talked to lots of people this year who lost a home to forclosure and had to move in with realatives. Hearing these folks stories is unbelievably sad. Most say that their problem was caused by over extending.