Overestimating Your Ability to Pay
Just because a bank is willing to lend you $500,000 does not mean that you should buy a house worth $500,000. While it might be tempting to break the bank to buy your dream house, you should think about your other financial commitments — children’s education, credit-card payments, retirement savings, and so on. At the end of the day, you do not want to be “house rich and cash poor.”
