Oscar & Olivia Obliviouz
They’ve just left their friends new home, and they want one too. Being able to decorate, and not to mention the huge tax break they’ll receive, is very appealing to them. They glance at their bills but don’t consider them a huge factor. Instead, they base everything on what they currently pay in rent and utilities.
We’ve all been where Oscar and Olivia are. I mean, the thought of owning something, especially property, gets the heart pumping. To be able to have full creative control of color schemes and landscaping without the watchful eye of the landlord is definitely exhilarating. You are the boss; the head haunch; queen of your domicile; king of your jungle. Who wouldn’t want that? Not to mention the prospect of getting money back at when tax time rolls around. Wow! There isn’t a downside to homeownership! Let’s go for it!
My Advice: There is absolutely nothing wrong with wanting the American dream, and on the surface, there seems to be no reason why that can’t happen for the two of you. However, by omitting current bills because you don’t see them as being important, you are possibly setting yourself up for disappointment. Add everything you can possibly think of. This helps your lender give a more accurate reading on what price range you fall into. Remember, just because you fail to mention the bill, doesn’t mean it goes away. You still have to pay it, along with a mortgage. It all adds up, and the last thing you want is to overextend yourself before you move the furniture in.