Should buyers stretch finances to buy in today’s market?

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

There are pros and cons to stretching financially to buy a home. An advantage of pushing the limit of what you can afford to pay is that you may save in the long run if this means that you move less often in the future. The fees involved with buying and selling homes can add up to tens of thousands of dollars, or more. Also, moving takes time and energy. Less moving means less disruption. On the other hand, if you make a big leap monetarily, lose your job and can't afford to make the monthly mortgage payments, you could lose the house and jeopardize your good credit. Buyers who stretch to buy a new home and count on a big payout from the home they'll be selling may be vulnerable in the current market if they're depending on a large sum and the property sells for less than what they expected. Despite the risks, there are compelling reasons for many buyers to move now to a home that better suits their long-term needs: There is less competition from other buyers; competition tends to driv...