5 Signs You’re About to Buy a Home You Can’t Afford


If you’ve noticed any of the five following signs occurring throughout your home search process, it might be an indication that you won’t be able to afford that home.
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During the home buying process, there are five signs to watch out for that indicate you’re about to purchase a home you won’t be able to afford.

1. The lender tries to get you to agree to creative financing terms. This could mean getting you into a balloon mortgage or adding a second mortgage—both are red flags.

2. You agree to a down payment assistance program without a true down payment saved up. This is a big mistake I’ve seen people make. Now, if you’re using a VA loan, that’s really good because you’re basically getting free money to borrow for no down payment. But often, down payment assistance programs can be a bad sign.

3. Due to an unfortunate incident, your savings have been diminished. In the event of a catastrophe like extreme car/home damage or loss of a job, you probably won’t be able to afford home payments in addition to getting those issues taken care of.

In the event of a catastrophe like extreme car/home damage or loss of a job, you probably won’t be able to afford home payments in addition to getting those issues taken care of.


4. Financing your down payment by borrowing from your 401(k), retirement account, Roth IRA, etc. These are signs you shouldn’t be purchasing a home yet.

5. You don’t have a good feeling about buying a new home. If you’re out looking for houses, you want to have a good feeling when you walk in. Make sure you’re buying the right house for you—don’t take advice from other people.

If you have any questions about affording a home or buying one in general, you can give us a call or send an email. We’d love to help you out.