Can You Afford a House?

Can You Afford a House?

a couple holding a house model

Affordability issues are one common reservation about buying a house. If this is the same for you, it is likely that you may be worried about getting together a sizable down payment while still paying for your other bills. You may also be concerned about not qualifying for a loan amount you want or not being able to keep up with the monthly payments if your application is accepted.

It’s only scary in the beginning

It is normal to feel nervous when taking on a large purchase, like your own property. You may feel the need to tighten your belt or make some sacrifice for quite some time to finance the purchase. But as you continue paying your monthly loan, you’ll get closer to owning your home. As things start to even out or once you’ve settled in, you may feel like owning a home doesn’t feel much of a burden anymore.

There are other alternatives

If the down payment is your concern, there are loan programs that allow as little as 5%. If you, on the other hand, want a sizable payment (20% or more), you can get help from friends and family members. Mortgage lenders in Kingsport noted that you could ask for a financial gift or a monetary present that can be added to your down payment. Getting a second job or selling used items also helps.

You can pay it over the years

When it comes to mortgage, you may feel like you can’t afford it, especially if you solely focus on the total cost of the house. Keep in mind, however, that a mortgage allows you to spread that amount over a couple of years. All you need is to not go overboard with what you can comfortably afford. You can use an affordability calculator to determine how much house you can afford.

Consider a small house

Living in a small space doesn’t necessarily mean that you’ll be cramped or uncomfortable. Even if your initial consideration is buying a large home, don’t just rule out a small property. Apart from being affordable, a smaller house also offers a host of other benefits like easy maintenance, less temptation to hoard things, and more family bonding. You’ll actually be happier in a smaller home.

If you think you’re ready to buy a home, get in touch with a reliable lender to determine the loan programs that fit your needs and budget.