When you’re trying to get into a home, you might have a lot of pressure on you. There are a lot of people that feel like it’s a serious sign of failure if they don’t get into the house that they first laid eyes on and bragged to everyone about finding. However, this is a trap that definitely takes you further and further away from your goals — and who really wants to be moving backward instead of forward?
You have to stop and think about the things that matter to you in a house and make sure that you stay within your budget.
Naturally, you’re going to run into a point where looking at your budget and looking at the numbers on the sheet describing your dream home really isn’t going to be enough information to really make one of the most important decisions of your life. You want to really make sure that you’re getting all of the information, and that means turning to the mortgage calculator.
Remember what we talked about at the beginning of this guide — the pressure factor? Now, you might be tempted to feed the mortgage calculator the right numbers that add up to you moving into your first choice home — even if reality says that you really can’t afford it. Some people — including overzealous agents and even your friends and family — will say that everyone plays with the numbers a bit.
Yet there are strong reasons not to try to cheat the equity release calculators. First and foremost, if something looks like it’s out of your budget — it usually is. Some people think that getting an adjustable-rate mortgage is the way to go if you can’t afford your home any other way, but that might not be the way to go — especially if you have any feeling that your income is going to decrease over the years rather than increase.
Another point that you will need to think about is that if you do play with the numbers and deviate from reality, you’re much more likely to do that on your official mortgage application — and that’s definitely a no-no. You don’t want to just jump in and get things that way, because if it’s found that you overstated your income — or understated your expenses, you are committing mortgage fraud. That is a very serious offense that can cause you to lose your home — the very last thing that you wanted!
So, if you take nothing else from this guide, take this: don’t cheat the mortgage calculator and make sure to avoid credit card debt!