Don’t purchase a house that costs more than what you can afford. Remember, the home buying budget involves more than affording a monthly mortgage payment.
A mortgage isn’t the only recurring expense: homeownership comes with many other ongoing costs, which you need to anticipate. These include insurance utilities, repairs, and maintenance costs. Maintenance alone can add up: The lawn needs to be cut, the leaves raked, etc. Buyers also need to consider property taxes.
These expenses can add significantly to your monthly outlays, making a home that seemed affordable on paper pricey in reality. So you should include all of these costs and other regular expenses when determining how much home you can afford.
Remember, if you failed to consider other monthly carrying costs, this can cause emotional and financial stress. And you don’t want, right?
Keep in mind that you can always upgrade to a bigger house down the road.