When you’re pre-qualified or pre-approved for a certain amount on a mortgage, that doesn’t mean that you should spend that full amount on the actual home price. It’s best to scale down your budget by a few thousand (ask your Realtor how much) to allow some wiggle room. The home cost is not just the value of the home. You’ll need to have money for closing costs, repairs, moving expenses, mortgage insurance, and property taxes, to say the least. Check out this post by Dr. Penny Pincher at AOL Finance for more hidden home costs that may sap into your budget:
-Outdated thermostats and HVAC systems
-Drafty old windows and poor insulation
-Bad mortgage rates- try refinancing
-Long commutes
-Buying too much house for your needs
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