Buying a House: Consider Your Lifestyle Needs
While money is an important consideration, many other factors could play a role in your timing. Is there an imminent need for extra room, a new baby on the way, an elderly relative who can’t live alone? Does the change include changing schools for your children? Will you pay capital gains tax if you were to sell a house in which you have lived for less than two years, and if so, is it worth waiting to escape the bite?
You may enjoy cooking with gourmet ingredients, taking a monthly weekend getaway, sponsoring the performing arts, or working with a personal trainer. None of these practices are budget killers, but you would have to do without them if you purchased a home based on a 43% debt-to-income ratio of your own.
Give yourself a little economic elbowroom before you practice making mortgage payments by subtracting the expense of your most costly hobby or operation from the payment you estimated. You can have to cut down on your fun and games if the balance is not adequate to buy the home of your dreams, or start dreaming of a less expensive house as your dream home. A good REALTOR® can aide you make the right offer for the property you’re interested in buying. For free valuation, contact us at 401-396-2888. We’re always glad to help!