Stretching the Wallet Too Thin

Buyer’s Biggest Mistakes:

• Being the Lone Ranger
• Not Getting Pre-qualified or Pre-approved
• Stretching the Wallet Too Thin
• Buying on Impulse
• Letting your Emotions Get the Best of You
• Being Too Trustworthy
• Skipping the Fine Print
• Failing to Get It in Writing
• Sitting on the Fence
• Buyer’s Remorse
• It’s All About Neighborhood
• Resale–A Key Element in your Future Plans

One of the biggest mistakes buyers make is buying more house than they can truly afford. Sure, the bank said it was okay, but when push comes to shove, can you afford the mortgage payments? A general rule of thumb is to not have your mortgage exceed 36% of your total household income before taxes. If you are already over-extended, you’ll have to scale back on the home you purchase. It’s smart to do a budget and see where your comfort zone with a mortgage really is. Be sure you budget for the unexpected! If it seems like it’s a tough number to stomach, it might be too much and maybe you should rethink your purchase strategy. Roll your numbers back and make a safe and sound purchase.