1. What Are Your Future Plans 5 to 8 Years From Now?Do you have a steady income? Does your current salary fulfill all your needs and wants? Do you see any unexpected financial, family or carrier changes in the future? If there’s going to be an addition to your family, you need to factor in a new budget for the baby. It’s better to get your finances sorted out now, so that you are not forced to sell your new house just a few months down the road.
2. What is the Total Cost of Owning the Property?It’s important to keep your insurance, interest, principal and tax expenses below 28% of the monthly income. On the other hand, your debts should be less than 36%, so that lenders don’t reject your loan application. A bigger house means more cooling and heating costs, higher homeowner association fees, bigger down payment, costly home repairs and other minor costs such as:
- Closing costs
- Moving costs
- New appliances