You want to get the most impressive home you can afford. If you’re going to take a mortgage to finance the purchase, then it’s essential to make a wise decision on the amount you want to borrow. The fact is what your lender believes you can afford may not necessarily make sense when you consider different other factors. These three personal factors also come into play.
You may have three sources of income, but if you spend almost every dime of what you get on paying your bills, then you need to think seriously whether you can afford another deduction. If, on the other hand, you have a stable source of income and a sizeable amount left after bills, then you can go ahead and apply for that home loan from a reputable mortgage company in Oregon like Primary Residential Mortgage, Inc. The idea is to avoid becoming house poor.
A dream home is a major milestone in life, but you need to make sure you can still sleep soundly at night when you owe $7,000 a month for the next three decades. If a quarter of that amount drives you nuts, then go for a mortgage you know you can live with. No need to die of worry 10 years after moving into the home of your dreams.
A mortgage will affect your lifestyle one way or another. You may have to tighten up your budget a little by making fewer trips to the store. Perhaps you even have to reduce your overseas vacations or sacrifice one car to save more on maintenance and fuel. The question, of course, is whether you’re willing to make those sacrifices.
Getting pre-approved for a mortgage doesn’t necessarily mean that you can afford the mortgage. It’s important to look at a few other factors to establish how much loan you can really afford.