When you are shopping for a home, you probably are focused on how much home you can afford, and getting that number as high as possible. But once you do calculate how much you can afford to spend on a home, it can be wise to choose a number that is just a little bit lower. Why? Here are a few great reasons.

1. You can afford to renovate and upgrade your home. If you haven’t maxed out your budget buying your home, you may have some extra money available if you want to make renovations or upgrades to it. You may be able to turn the kitchen into your dream kitchen, or add a swimming pool, or install solar panels. So, even if the house is smaller, you can customize it more to your needs, making it truly your own.
2. You can buy more luxurious furnishings and décor. Speaking of personalizing your home, with the extra money you saved, you will be able to afford to spend more on furniture and décor for a sumptuously comfortable and beautiful interior.
3. If your home needs repairs, you can make them with greater ease. No matter how thorough the home inspection was, there is always a chance that something will go wrong after moving into a new home. And even if you go years before something needs to be fixed, home repairs are just a part of life. Ultimately, they are unavoidable. If you have spent a bit less buying your home, you may have the flexibility you need to make high-quality repairs quickly when necessary.
4. Other expenses related to your home will be more affordable. Along with the cost of your mortgage, you may be paying for mortgage insurance, homeowner’s insurance and homeowner’s association fees. There will also be utilities costs and property taxes. Affording these additional costs is easier when you have a slightly smaller mortgage.
5. There will be padding in your budget in case anything changes. Finally, it is helpful to have at least a little wiggle room in your budget. That way, it will have room to bend instead of break if anything changes in the future. If you lose a job, struggle with inflation, or face unexpected expenses, at least you will still be able to afford to keep paying on your home loan. You can then keep living in the house you love as you work on getting back on track.

Find Out How Much Home You Can Afford

Haven’t done the math yet to figure out what you can spend on your home loan? Getting pre-approved for a mortgage is a step that can tell you how much home you can afford, which will help you decide how much home to shop for. To begin, please call (317) 255-0062 to schedule your mortgage consultation. We can help you buy a home affordably and easily in Indianapolis or anywhere in IN.