Knoxville First Time Buyers Beware: Why You Shouldn’t Spend As Much As You’re Approved For
When you get pre-approved for a Knoxville mortgage, you may be approved for more than you expect. When that happens, you may get a little overzealous thinking, “Wow, I can afford so much more than I thought!”
But, before you start your Knoxville home search, it may be important to consider if you can truly afford the amount that you qualify for. Many buyers often think that because they can qualify for a certain amount that means they can afford it. Unfortunately, that is not always the case.
In this post, we’ll look at why shouldn’t spend as much as you’re pre-approved for.
What You’re Approved For May Not Be What You Can Afford
When you get pre-approved, a loan officer will look at your income and debts in order to determine what you can qualify for. Just because you qualify for a certain amount doesn’t mean that you can necessarily afford that amount.
You personally know what your monthly budget is. You know how much you’re comfortable with spending on a mortgage each month, so if spending as much as you qualify for makes you uncomfortable, it may be time to reconsider how much you want to spend on a house.
You’ll Have Extra Cash
You’ll have extra cash when you spend what you can afford, instead of what you can qualify for. That’s very important when you buy your first home.
You’ll have money for new furniture, decorations, and anything else your new home may need. Buying a new home is much more enjoyable when it’s something that you can afford. You’ll be able to buy the things you need for your home.
When you have the extra cash for things in your new home, it gives you more freedom to enjoy being a homeowner.
You’ll Have Money For An Emergency
You’ll also have the funds in case of an emergency when you can afford you monthly payment.
Will you have the funds to fix an appliance if it breaks? Or, to fix your water heater when it breaks? When you can afford you monthly payment, you’re more likely to have the extra cash stashed away in an emergency fund.
When you buy more of a home than you can afford, it can be hard to stash away extra money when you can barely afford your payment.
You’ll Be Less At Risk Of Missing A Payment
Finally, when you buy a home that you can afford, you’ll be less at risk of missing your payment.
A home you can afford has a manageable payment that you’re comfortable with. By having a payment you’re comfortable with, you’re less likely to struggle making a payment in the future.
Be sure that you take all housing costs into account when you consider what you can afford. Things like the cost of taxes, homeowner’s insurance, and homeowner’s association dues are all costs of owning a home.
Are you thinking about buying your first Knoxville home? Are you unsure of where to start? Don’t worry – you’re not alone. We’ve helped countless Knoxville first time buyers buy their first home and we’d love to do the same for you. Shoot us a text, email, or give us a call today. Rick can be contacted at 865-696-9002 or via email at Rick@KnoxvilleHomeTeam.Com. Kati can be reached at 865-696-1888 or via email at Kati@KnoxvilleHomeTeam.Com.
Are you ready to start your home search? Visit our home search page to get started today. Or, be sure to keep up with our Knoxville First Time Home Buyer’s Blog to keep up with the latest information about buying your first home.