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Buying a home is a big deal, so make sure you don’t make the wrong call.
Buying a home is no easy feat these days. That’s because home prices are way up, and so are mortgage rates. And so unless you have a really healthy budget, you may have to make certain compromises in order to snag a place of your own.
But there are certain factors you shouldn’t compromise on when it comes to buying a home. And if these signs apply to you, you may be on the verge of making an offer in a place that’s really not a good fit at all.
1. It’s over your budget
As a general rule, your monthly housing costs, including your mortgage payment, property taxes, and homeowners insurance premiums, should not exceed 30% of your take-home pay. If you’re buying a home that will put you over that threshold, that alone is a sign that you may want to reconsider. If you take on housing expenses that are too high, you might fall behind on them or on other bills, leading to a world of financial struggle.
2. It’s not convenient to your job
Many people are back to full-time in-person work these days. If you’re one of them, and the home you’re looking for will leave you with a miserable commute, you may want to seriously rethink your offer.
Your commute is something you’re going to have to deal with on a daily basis. And the stress of a long commute can impact your overall well-being in a very negative way.
3. It’s nowhere close to friends and family
It’s important to have access to your friends, family, and support network. If the home you’re looking to buy puts you nowhere near anyone you can count on in a pinch, you may want to rethink your plans.
Granted, some people do decide to move to an area where they don’t know anyone to pursue job opportunities or enjoy a more affordable lifestyle. But if the idea of being separated from the most important people in your life is troublesome, then you may want to rethink your home purchase.
4. It’s way too small — and there’s no way to expand it
Sometimes, a smaller home can become a larger one city renovating it, such as finishing a basement to add living space or putting on an addition. But if you’re looking at a home that’s clearly too small for your family, and there’s really no way to make it larger, you might end up regretting your decision.
It’s one thing to give up a separate dining room and settle for an eat-in kitchen instead. But it’s another thing to buy a two-bedroom, one bathroom home when you’re a family of five.
Because home prices are up these days, buying the wrong place can be particularly problematic. If your purchase doesn’t work out and you’re forced to sell in a couple of years, you might end up getting much less for your home than what you paid. And that’s a risk you probably don’t want to bear. So instead, really take the time to make sure the property you’re about to buy is the right one. And if you have your doubts, look out for these key warning signs.
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