When you apply for a mortgage, the lender examines your finances to determine how much they are willing to allow you to borrow to buy a home. For prospective buyers seeking their Florida dream home, it can be a shock just how much mortgage it takes. 

However, the bank doesn’t see the full financial picture. Just because you’re approved for a certain amount doesn’t necessarily mean it’s the best choice. It can be hard to back out of buying a Florida dream home, but buying a house at the top of your budget can put stress on your daily finances.

You know your own budget best

While your mortgage application feels like an examination of all your finances, there is plenty the bank or lender still doesn’t know about. For instance, they know how much you spend on regular monthly bills, groceries or entertainment. They don’t know the current fuel prices or how much you pay in property taxes.

Mortgage preapproval is a good start, but it’s best to track your spending carefully to find out how much home you can reasonably afford. 

Your home has many monthly expenses

You’ll have many monthly bills on top of your mortgage payment, including:

• Insurance payments.
• Internet & utilities.
• Property taxes.

On top of these bills, you’ll need a bit of a cushion to allow you to make repairs around the house. Anything can break when you least expect it – and as a homeowner, it’s tough to go without a refrigerator or a water heater for an extended period. 

While buying a Florida home at the top of your budget is achievable, consider your overall financial situation to make sure you can live comfortably in your new home.