Buy the Home You Can Comfortably Afford, Not Just the One You Qualify For

Veronica Murphy’s video is a lighthearted skit: a parent telling a kid “You’re getting slacks!” when they wanted blue jeans. Jokes aside, it makes an important point about buying a home: know what price range you can comfortably afford, so you don’t set yourself up for disappointment.

Approved for vs. comfortable with

When you get pre-approved for a mortgage, the lender tells you the maximum you can borrow. That number isn’t necessarily what you should spend. It doesn’t account for:

• How much you want to keep in savings for emergencies
• Costs like childcare, travel, hobbies or retirement savings
• Rising costs for utilities, insurance and property taxes
• Maintenance and repairs, which every homeowner faces

Why shopping above your comfort zone backfires

If you start looking at homes at the very top of your budget, or above it, you’ll likely:

• Fall in love with homes you can’t actually afford
• Feel let down by homes that are realistically in your range
• Be “house poor” after closing, with little money left for life

How to find your comfortable number

1. Get pre-approved to know your maximum.
2. Build a monthly budget with your new mortgage, taxes, insurance and utilities included.
3. Leave a cushion for savings and surprises.
4. Set your search range based on what you’re comfortable with, not the max.

Shop smart from day one

Veronica helps her buyers figure out a realistic budget before they start touring homes, so they fall in love with homes that fit.

Call Veronica at 289-768-9968 or start your home search.