How to avoid overspending in this hot housing market

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You have to have a clear plan in place before you start looking for your next home, experts say.

"Know what your parameters are so you don't get caught up and wind up buying more house than you comfortably afford," she said.In addition to your down payment, have an emergency fund in place for any unexpected expenses.

Even if you don't have the generally suggested three to six months in expenses saved, make sure you have something established before you buy a home, Wright said.Some of your bills, such as heat and hot water, may go up if you have moved from a rental or a smaller home. You may have to pay for landscaping and lawn care.

There will be other costs associated with getting into the home such as moving expenses, furniture or potential upgrades or renovations. Be realistic about those costs. Nearly half, or 48%, of those recently surveyed by Ally Home said they wish they had been more prepared for the cost of home repairs.Once you have a budget, only look at homes that fit into it — or come in under it, Holbert suggests."If you look at homes a little lower than your budget, it will give you flexibility to make competitive offers."In choosing a lender, look at what the costs will be, including fees and any points that will be charged, Wright suggests.

You can also see if you qualify for any incentives that can bring down the cost of your mortgage, like assistance for

 

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Don’t buy?

Don't buy

How do we avoid overspending? Well you guys would just use NakedShorts yeah? You know, using stuff you don't have... 😂😂😂

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