Don’t Let Your Dream Home Become a Financial Nightmare

It’s easy to get swept up in house hunting and aim higher than your budget allows. But buying more than you can afford could lead to long-term stress and financial strain.

A good rule of thumb: Keep your monthly mortgage payment (including taxes and insurance) below 28–30% of your gross income. Lenders also look at your DTI (debt-to-income) ratio, which includes all your monthly debts.

Other important factors:

• Your down payment

• Property taxes in your area

• Homeowners insurance

• Ongoing maintenance & unexpected repairs

Don’t forget the upfront costs—like closing fees, inspections, and moving expenses. These can easily add several thousand dollars to the process, so budget accordingly to avoid surprises.

It’s smart to build in a cushion for emergencies and future life changes. Just because the bank approves you for a $400,000 home doesn’t mean you should buy one at that price.

Use tools like mortgage calculators or talk to a loan advisor to estimate your price range. Being realistic now saves regrets later—and sets you up for long-term success.

It’s tempting to waive inspection to “win” the offer—but this can lead to expensive surprises later. Even new homes can have plumbing, roofing, or electrical issues.

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