Buying a home for the first time or even a second or third time is a detailed and meticulous endeavor that should be carefully considered by weighing out all your options. Consider this when buying a home with a mortgage…

The problem homebuyers can sometimes run into is it they get so wrapped around the purchase price of the house about overpaying for a property or buying a property that might need some work they lose sight of the bigger financial picture which is the support of their ability to buy the house in the first place.

That support to be able to purchase a house and sustain a budget over the course of time is directly incumbent on income, credit, monthly debts and ability to save, not the purchase price of the house.

Most home buyers would be better served giving the lion’s share of attention to their financial profile e.g. payments not the home price. The reason being is because the purchase price of the house can sound daunting, but in terms of payment it’s not that big relatively speaking. For example, a $10,000 swing in purchase price may result in a payment change of about $100 a month. You heard that right. $100 a month can be easily offset by paying off one or two credit cards that you’ve been carrying. Remember consumer debt is not tax-deductible. A $10,000 negotiation in a real estate transaction can be huge in terms of your ability to get the house. Ask yourself this question “Is $10k a month worth the possible loss of all the future memories location and happiness that you and your family otherwise might enjoy for that that $100 per month-knowing that you can probably gain $100 a month by paying off a consumer debt anyway?”

Make no mistake purchase price is important, but the number one driver when buying a home should be payment. On a fixed-rate mortgage your payment can be used as a baseline foundational tool to plan your other life expenses and family budget. Any financial planner that takes a holistic approach towards finances and balanced planning will tell you this. Get control of your finances monthly first while continuing to save. Remember when you buy a home you can to write off the interest and taxes. You will also enjoy betterment of higher credit score while building wealth in the form of home equity.

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