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Stretching the Wallet Too Thin


Stretching the Wallet Too Thin

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.