One thing that can put a person into a financially difficult situation is them buying more home than they can afford. Thus, staying within one’s budget can be vital when home shopping.
When deciding what sort of home would be within their price range, a lot of a person’s focus will likely go to the prices of the homes on the market and what kind of mortgage they could get. These are obviously big factors in what sorts of payments a person would have after they purchase a home.
However, down payments and mortgage payments are not the only costs a homeowner faces. Examples of additional expenses related to home ownership include costs connected to: utilities, landscaping, maintenance/repairs, homeowner’s insurance, mortgage insurance, property taxes, furniture and HOA fees. Failing to take these other costs into account when choosing what home to buy is one of the things that could lead to a person, in the future, facing more housing-related costs than they can handle. Thus, keeping in mind all typical home-related costs can be important for home shoppers when coming up with their home budget.
Of course, sometimes even when a person is careful in picking a home within their price range, factoring in all typical house-related expenses, they end up facing problems with their mortgage payments down the line due to unexpected financial events. When, for any reason, a homeowner is facing mortgage struggles, a lot could be at stake for them, including their ability to keep their home. So, when facing mortgage difficulties, speaking with a lawyer with deep knowledge of foreclosure prevention strategies can be important.
Source: USA Today, “Don’t make this mortgage mistake in 2016,” Matthew Frankel, Feb. 1, 2016