It can be really tempting for first time home buyers to feel tempted to max out their budget. After all, buying a home is exciting. When you find a gorgeous house, it’s easy to feel like a kid in a candy store, especially if it has an open-concept living room or other details from your wish list. Remember to take a step back and analyze your long-term goals before signing on the dotted line. Here are a few things to factor in:
- Closing costs
- Insurance
- Taxes
- Needed repairs
- Desired modifications
- Monthly loan payments
Even if you’re prequalified for a certain amount, you don’t have to take out the full amount in your mortgage. One of the best first time home buying tips is to leave yourself some wiggle room. This can give you more flexibility afterward for making changes, such as if you notice that you really want to upgrade those kitchen cabinets after all.
