There are five signs that will tell you that you’re about to buy a house that you simply can’t afford.

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Sometimes, when we’re working to help guide a buyer in their home purchase, they’ll ask us how they can know if they’re buying a house that is more than they can swing. Just because they were approved for a certain amount, it doesn’t necessarily mean that you’ll have an easy time managing payments.

To gauge whether you’re stretching yourself too thin, keep an eye on the following five signs:

1. Are your financing options unconventional or creative? If you’re resorting to or being offered highly unconventional mortgage options to use in order to make your purchase work, it could be a sign that you’re swinging a little too high.

2. Do you need down payment assistance programs to qualify for this house? If the purchase or sale price of the home is so high that coming up with the down payment is a struggle, then it could be an indication that you’re trying to purchase outside your range.

“IF YOU HAVE ENOUGH MONEY PER MONTH TO COVER YOUR MORTGAGE, BUT HAVE LITTLE LEFT OVER FOR THE REST OF YOUR EXPENSES, THAT’S A DEFINITE SIGN THAT YOU’RE EXCEEDING YOUR LIMITS.”

3. Do you have just enough money to cover your mortgage? If you have enough money per month to cover your mortgage, but have little left over for the rest of your expenses, that’s a definite sign that you’re exceeding your limits. Don’t squeeze your budget too tightly.

4. Are you considering taking money from your retirement funds? If the only way to make your mortgage work is to take money from your hard-earned retirement funds, then that’s an issue.

5. Do you have a bad feeling about the purchase? If, during your purchase, you get an overwhelming sinking feeling that the whole thing is a bad idea, it’s a good idea to go with your gut. We do want to help you purchase a home, but you should also be happy with it. You’re the one who has to live in the house and manage your expenses, so your feelings are paramount.

If you’re a homebuyer who is experiencing one or more of these signs, or if you’re interested in purchasing a home, please feel free to reach out to me. We’re always here to help and provide excellent service to you.