When a new home buyer applies for a home mortgage pre-approval, the amount given as to what the buyer can spend on a home is simply an estimate and may not be a true indicator of what a buyer can actually afford on an on-going basis. There are many factors that affect a buyers home buying ability that are not usually considered in a mortgage application.
Add these eight numbers to your budget, to better determine how much of a mortgage you can reasonably handle on an on-going basis when searching for a home to buy.
Make sure to consult with a lender or financial advisor with any questions you may have about your personal financial situation and how it relates to financing a home.
1. Home Improvements and Upkeep Expenses After the Sale