A monthly mortgage is a massive commitment, so you have to be sure you don’t bite off more than you can chew. Falling behind or being delinquent on it can mean your home gets foreclosed and you have to move. If your financial picture involves raising kids at the same time, then you have unique challenges to prepare for.
Anticipate Future Kid Costs
You can never know the future, but you can make reasonable assumptions about how much each of your kids will cost you in the coming years. Daycare, food, medical expenses, school supplies, and all the other things that can happen in each age of childhood and teenage years are things you can look up and budget for in the long run.
Are You Going to Have More Kids?
If you plan on having more kids than you have currently, then you need to leave yourself a lot of wiggle room in your budget. Your expenses will go up with each child you add to the family.
Know Your Numbers in Advance
Some companies, like AJM Mortgage Inc. recommend that you get preapproved for your mortgage when buying a new home. This will help you know how much home you can afford. But keep in mind that you can often pre-qualify for more than you should prudently spend. Jusrt because you qualify doesn’t mean you should spend that much.
Save Money Whenever You Can
Aim for having anywhere from six months up to two years of income saved up in a liquid account you can access easily. Bumps in the road will happen, but if you have a cushion, then you can withstand the hits without missing mortgage payments.
Refinance When It Makes Sense
Mortgages can sometimes get cheaper as they go on. Switching the term length, moving to a different rate, and jumping from a fixed to a variable or vice-versa all might make your monthly payments cheaper at the time based on the market conditions.
Children growing up are exploring a big world and always going through personal changes. The more stability you can bring into their lives, the better. While a mortgage is a huge responsibility, having a steady home means your kids have a safe place to grow up at their own pace.
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