The price of a house is perhaps one of the most crucial factors to be considered when purchasing a home albeit, its weight can be easily overlooked once the search for a home takes off. A budget of 18,000 Ghana cedis can become 180,000 Ghana cedis in a matter of minutes.

The best way to avert this situation is by making a prior determination of how much you are looking to spend on the purchase or at least an affordable range. This will make it a tad harder at least, to impulse buy or overspend.

As simple as it sounds, settling on that perfect price is easier said than done. HOWEVER;

-Do not rely on a bank, lender or even a real estate agent to determine the amount you should spend on a home. In fact, no matter how accurate the calculations they run on how income and assets stack up against debt and liability, it is usually impossible for them to fully understand each peculiar financial situation.

Preapproval gives you a head start when buying with a mortgage; I agree but you need to take a harder look at the monthly payment that comes with that mortgage amount. The hard truth is that just because you meet the requirements for a particular loan service or package does not necessarily mean the monthly payment will work well with your budget. What you need to do is to consider your pre-existing or probable financial obligations alongside the required monthly payment and then conclude on a payment zone that fits comfortably with your overall budget.

-Avoid being a buyer who purchases on impulse or merely because they ‘fell in love’ with the house-believe me, that feeling is usually fleeting. Purchasing a home based on actual calculations will not leave you second-guessing yourself. It will give you the confidence you need to help you make a sound decision.

What you should rely on is how much you can really and easily afford. Determining a monthly mortgage payment that fits comfortably into your current budget without considering other costs of homeownership can get sticky.

One other factor you will need to consider is, how much will affect your financial stability in the future. You should take into account certain future plans like a wedding for example. This helps to assess how these financial commitments may or may not affect your ability to pay your mortgage.

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