Don’t Let Your Dream Home Make You “House Poor” 🏡

Just because a lender says you’re preapproved for $250,000 doesn’t mean you have to spend $250,000. That number is simply the maximum they’re willing to lend — not necessarily what’s best for your life or your budget.

Before you sign on the dotted line, ask yourself:

• Can you still take a vacation without putting it on a credit card?

• Will you need to pick up extra work just to keep up with the mortgage?

• What happens if your car needs a major repair or the A/C quits in the middle of summer?

Too many people get caught up in buying the “perfect” home and end up house poor — stuck in a situation where every spare dollar goes toward the mortgage, leaving little room for anything else.

Here’s a better approach: buy the house you can live in comfortably, not just the one you can technically afford. That might mean going for the one with the carpet you’ll eventually replace, the brown cabinets you’ll paint later, or the dated light fixtures you can swap out over time.

Small, manageable upgrades done at your own pace are far easier — and far less stressful — than struggling month after month to make a payment that leaves you with no breathing room.

Life has a way of throwing surprises at us — medical bills, job changes, rising costs — and your home should be your safe haven, not a source of financial anxiety. When in doubt, choose the home that leaves you room to live your life, not just pay for it.