When you want to buy a new house, one of the big things to consider is how much you can afford. You'll need to think about how much you can offer as a down payment, as well as what you can afford for a monthly mortgage payment. Some buyers make the mistake of looking at their current financial picture when they're shopping for a house, rather than considering where their finances will likely be in a few years' time — when they still own the house and are making mortgage payments. Here are some future financial considerations to think about.

Child Going To College

Perhaps your children are in high school or elementary school right now, but things won't always be this way. In a matter of years, you may have one child or multiple children attending college, and the cost of this higher education will be considerable. You need to make sure that you buy a home that you'll be able to afford when you're spending several thousand dollars annually on post-secondary education. Do some research on predicted college costs for the years that your children would be studying, and then keep these numbers in mind when you shop for a house.

Retirement

Although some people downsize to a smaller home right before retiring or immediately after that, not everyone wants to make this move. If you're looking for a home in which you can stay for an extended period of time, try to assess exactly when you'll be retiring. Ideally, you'll be able to pay off the mortgage by the time that you stop working, but if this isn't the case, you'll need to evaluate your financial situation when you no longer have the income that you have now. Consider your pension, investments, and other potential sources of income so that you can still afford the home after you're done working.

Caring For A Family Member

Although it's not always possible to predict how you may need to spend your money in the future, many people end up caring for an ill or elderly family member at some point. If this person doesn't have the financial means, you may feel inclined to help out — and this can be costly. If you have an elderly family member who you expect will need eventual care, such as a live-in caregiver, and doesn't have the financial resources to pay for these costs himself or herself, you may be looking at additional monthly bills. If this is the case, you'll want to be sure that these costs don't limit your ability to pay your mortgage. By keeping these financial considerations in mind now, you can make the right choice for buying your home.

Contact a company like New Home Buyers Marketplace for more information and assistance. 

Share