You can pay too much

No one else is going to tell you this so I am going to have to do it. It is quite possible to pay too much for a house. Both by paying more than the house is worth and more than you can afford to pay for housing.

First-time homebuyers who pay too much for their first house may have to wait longer to “move-up” to larger houses. Sometimes people believe they will stay in the same house forever but plans can change because of a job, marriage, death, or divorce.

Home prices are still climbing but many of us remember the great recession. Prices stalled and then went down.  People had a hard time coming up with the money they needed to fill the gap between the money they got for the sale of their house and the amount they owed on the mortgage.

Going over budget on a home purchase can also lead to trouble. There are people who are house poor. They don’t have much disposable income because of their large house payments.

Just keep in mind that owning a home is a long-term commitment and it will have an impact on your life and maybe on the lives of others if you have a family.

There is a good chance that neither your lender nor your real estate agent will try and talk you out of spending too much. It is up to you.

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