Many factors play into house affordability

Homebuyers need to consider total expenses when deciding whether or not they can afford a particular home, according to U.S. News and World Report.

Hidden costs sometimes go overlooked, the source says, but they can make the difference between an affordable home and one that exceeds an individual's budget.

Potential homebuyers should consider whether or not they are able to make a sizable down payment on a property. If they cannot afford 15 to 20 percent of the cost of the property, the source suggested they may be looking at a property that is too expensive.

There are also additional expenses to consider, including homeowners insurance, property taxes, closing fees, maintenance costs and moving expenses.

In addition to pre-purchase considerations, there are also some errors homeowners make that may cost them. Moving away from a new home within a few years may not allow the home's value enough time to appreciate in order to cover the transaction costs, the source advises. Also, borrowing the maximum amount could be a major mistake, should the homeowner's income reduce at some point in the future.

The power of factoring in all potential future expenses and risks may be the difference between being able to keep a home or losing it to foreclosure, as nearly 70,000 homeowners did in February, according to RealtyTrac.  

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