Many prospective Home buyers, at one time or another, fall victim to the "kid-in-a-candy-store" mentality when they find the home of their dreams is available but happens to be priced just a little outside their price range. If you find yourself in this situation, there are some things to contemplate.

Sometimes financial stretches for buyers make sense. This is especially true when you consider that each additional thousand dollars on the overall Home Price equates to a mere $100 - $200 extra on the monthly mortgage payment.  Not only that, but Buying a nicer, larger home will often save you time and money in upgrades in the following years. This means that you can spend your years living in your home instead of working on it.

For a vast majority of people, the purchase of a new home is a long-term financial investment. So if you plan to be in the home for many years to come, then stretching financially may be a great buying strategy for you. 

However, everyone's financial situation is different and sometimes financial stretches for buyers are not a good idea.  For instance, if you are not planning on being in the home for more than 5 years, then you could lose a lot of money in the up and down cycles of the housing market. Also, if you do not have much job security for one reason or another, then you may not want to stretch to a more expensive home.

Financial stretches for buyers can be a calculated risk that pays off well over time. But if you’re a buyer with financial uncertainty, then you’re probably better off not pushing yourself to your financial limit. Talking with an experienced real estate agent is your best step for working out a buying strategy that works well for you.