How To Determine If You Can Afford The Home You’re Eying

If you are in the market for a new home, chances are, you’ve already figured how much money you have for the down payment. Likewise, with the help of your mortgage broker, you’ve already computed what your affordable mortgage amortizations would amount to, as well as based on your regular income the total price in which you can afford the home in Bradford. However, have you taken your lifestyle into account?

Having said that, here are some lifestyle factors you need to consider when searching for a home to buy:

Travel Goals

Do you plan to travel? Where? How long? What do you like to see and experience? How much money do you need to set aside to see your travel plans through? These questions need to be answered for you to determine if everything is within budget or you need to cut back on your travel expenses to afford your monthly mortgage payments and living expenses.

Do You Have a Green Thumb?

If you love the outdoors, gardening, and landscaping, then you need a property that comes with a lawn. However, if you hate maintaining a lawn and you bought a home with one, you will only be burdened with additional expenses for the upkeep. If you don’t want spending an extra 100 bucks for professional landscape maintenance monthly, then you may want to forego the lawn to save on costs.

The Pool

Most people dream of having a pool in their home. However, a pool comes with a lot of costs for maintenance, utilities, and insurance. Consider if it would be a better option to just head off to the community pool whenever you feel like swimming, instead of buying a home with a pool.

Kids

If you intend to start your own family in your new home, it is not enough to include only the mortgage in your budget. You need to factor additional expenses for your growing family, including daycare costs and higher living expenses.

Entertainment

If you are used to dining out, attending concerts, and watching movies and sporting events, you need to find out if you need to cut down on these activities to afford your monthly mortgage payments. Can you live without these entertainment activities for a long time? This is especially true if you are going for a 30-year mortgage term. Otherwise, consider buying a lower-priced home so you would not be deprived of the activities you enjoy doing.

Retirement Plan

If you are still in your 20s, it is recommended that you save 10% of your regular income; 15% if you’re in your 30s. It would not be wise to cut down on the money you regularly set aside for your retirement just to afford your home purchase.

Think carefully when considering this option, and make sure that you will not lose much until the time you are able to make your ideal savings levels. Homeownership in Bradford is a good way to start building your wealth for the long term. However, it is crucial that you maintain your regular contributions for your retirement. This is important for your and your family’s future security.