If you just came from your lender and learned that you can spend more for your new Beverly Hills real estate than you thought, it could mean one of two things:
1. Interest rates are lower, so you can “buy more house” for the same money. If this is the reason – it’s time to celebrate.
2. Your lender didn’t consider the other priorities in your life. If this is the reason – stop and think before you take his or her advice on purchasing Beverly Hills real estate.
Before You Buy Beverly Hills Real Estate, Beware
Some of us simply need more money left over after the monthly bills are paid. Stop and think about how you’re spending that “extra” money right now, and whether you’re willing to change your habits.
If you cherish a weekly night out, love to attend concerts, or need that week on the beach or a ski mountain every few months, you’ll grow to resent the mortgage payment that takes those things away from you.
Maybe you want to send your children to private schools, or would like to go back to school yourself.
In addition, remember that the larger the Beverly Hills real estate, the larger the tax and insurance bills, and the more time and money it takes for maintenance.
Before you take a lender’s word for how much you can spend on your mortgage, look at your budget and your lifestyle. Buy the house that suits your needs – even if your lender says you can afford more.