Buying your first home or any home is always an exciting process. You have worked hard to save your deposit, you both have good jobs, you have paid all your debts and now it’s time for you to buy your first home/other home. You both work, you have no credit cards & you own your vehicles, what could go wrong, you will rock home this mortgage. HOWEVER, you need to consider few key areas when you are setting your budget.
- If one of you falls ill or heaven forbid loses their job, you are back to one income now paying for everything.
- If interests rates rise, have you allowed enough in your incomes to repay the extra.
- Repairs & maintenance can be costly if there is a major issue crop up, can you afford that.
- Can you continue to save.
- If you don’t have children yet can you afford your mortgage if you do.
- If medical expenses crop up or if you need another car, will you be able to manage.
These are just a few of the questions you need to ask your self when setting your ideal budget. I have seen a lot of people lose their homes from loss of income and it’s devastating. So do your homework first, put in the groundwork and be realistic.