RealEstate.com Home Buying Tips: Don't Be Home Poor

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Buying your first home? Make sure you don't overbuy! Your home should be an investment, not a burden.
For more tips check out our blog at www.RealEstate.com/Advice

What mistakes should I avoid in buying a home?
Avoid Overbuying. You may love the extra space or luxury features, but you don't want to be home poor and overbuying can have serious long term financial consequences. Figuring out what you can afford should be the first step in your home buying process even before you find out want you qualify for. Analyze your monthly costs include all debt, food, transportation, entertainment and don't forget savings. Be sure to include in your budget home buying expenses, such as moving, closing costs, and any additional home décor and furniture for your new place, as well as ongoing expenses like taxes, utilities and maintenance. The general rule of thumb is your total debt including mortgage should not be more than 36% of your pre-tax pay. Remember your home should be an investment, not a burden. For more real estate advice visit realestate.com/advice.