Here are 3 key tips to make sure you’re not taking on more than you can handle.
1. Start with a budget
To get a real handle on what you can afford, you need to spend a few good months being honest with yourself about what you’re spending. Check out my free budget worksheet, and take a look at where your money is really going each month. After you have a handle on what’s important and what’s frivolous, it’s time to figure out what portion of your monthly income you can commit to a mortgage. The general rule of thumb dictates that housing costs should not cost more than 35% of your monthly income, however, everyone’s situation is different!
2. Work through a mortgage pre-approval and attend your Mortgage Agent’s workshops
3. Break up with Real Estate Professionals that are pushing you outside your comfort zone
If you’ve done your homework – you’ll know what you can afford. Don’t let anyone else tell you what YOU should be comfortable with, budget-wise. You’ve done the work – stick to your guns!