When you start house hunting, you have a lot of ideas about what kind of home you want. But the biggest constraint is budget. 

It can be easy to convince yourself that just another $10,000 or $20,000 spread over 15 or 30 years makes a higher mortgage very doable. But don’t forget that with interest, that extra money becomes significantly more.

At INB, buying a home is more than just a transaction. Because our mortgage team wants to make sure you’re comfortable with the budget for your new mortgage and with your daily lifestyle.

“When a client comes in to get pre-qualified, we always let them know what their maximum amount is, but most people know where they are comfortable with a monthly payment. Once we figure out the monthly payment in their comfort zone, we’ll let them know what total price to shop for,” says Springfield-based INB mortgage lender Natalie Dodson NMLS # 574151. “And when we see their credit report, we can also go over other ideas regarding their overall budget.”

Buying more home than you can afford can have long-lasting impact on your life. Here’s why we always recommend finding a home within your comfort zone: 

• Lower financial stress. Being financially strained is one of the biggest stressors in life! Overextending yourself to purchase a home can lead to difficulty in managing your whole budget and financial future.
• Ability to afford maintenance and upkeep. “Owning a home is an extremely worthwhile endeavor and achievement,” says INB Bloomington mortgage lender Luke Wielgopolan, NMLS # 2545773. “But with taking other factors into account – such as home insurance, mortgage insurance, taxes, maintenance, and other projects – the dollars can add up fast. All these things can make you feel ‘house poor’ quickly.”
• Room for other financial goals. Staying within your price range means you have extra money to put toward other financial goals, whether it’s your kids’ education, vacations, hobbies or retiring. “We definitely try to make sure our clients are able to find room to save for emergencies, fun things, investing in retirement, and more,” says Luke.
• Lower debt. High debt-to-income ratios can negatively impact your credit score and limit your ability to obtain additional credit if needed. Living with excessive debt can be crushing.
• Sustainable budget. There’s no guarantee that your home will go up in value. And you’re better positioned to weather the changes in your local home market if it’s within your budget. I’ve personally seen several people who stretched themselves to buy their home and ended up selling due to the financial pressures.
• Better quality of life. Financial stability enhances your overall quality of life. You can enjoy your home without constantly worrying about making ends meet.

At INB, we want you to enjoy your home without feeling burdened by it. When you begin the homebuying process, we’ll have honest discussions about your income, your loan payments, and other financial considerations so that we can help you figure out a budget that you’re comfortable with.

“As mortgage loan originators, it’s our duty to provide people with the most information as possible about the purchase of a home, taking into account a holistic view of their financial and personal situations, and also their goals and comfort,” Luke says. “We’ve seen people get in trouble when they buy too much house, so we strive to serve as advisors, presenting our clients with options on how to achieve their financial goals alongside homeownership.”

Ready to figure out your budget and find your dream home? Contact INB Mortgage today.