While the majority of foreclosures happen due to unforeseen circumstances, many people experience mortgage debt troubles at least once in the life of their loan. Whether that is a single month with a late payment, or the constant threat of late payments, many people are treading too close to the line for comfort. In fact, a big part of homeownership is preparation for the unexpected.

Between sudden job loss, medical impairment or other life events, it isn't uncommon to end up in debt or foreclosure because of a lack of emergency funds. When it comes to buying a house it is important to examine whether you can really afford one, and not just in terms of the monthly payment. Before you buy a home it is important to ask yourself the following questions

Did I buy within reason?

 Real estate experts suggest that everyone get pre-approved for a loan before you begin shopping. The idea is to know how much you qualify for before you find a home you love but can't obtain. However, this can be tricky for some people when they don't focus on what is really important, the monthly payment. While you qualify for $400,000 home, your monthly budget may not be able to support a payment this large. The most important thing is to determine how much a month you can afford to spend on a monthly payment and only shop for houses in that price range.

Do I have enough to cover closing costs?

 The general requirement by most lenders is put down anywhere between 5 and 20 percent of the total loan cost at the time of closing. However, there are some lenders that offer 100 percent financing, which can quickly get you into trouble. Not having enough money to cover a down payment usually signals a bigger financial problem. A good rule of thumb is to wait on buying a home until you have at least a 5 percent down payment plus closing costs.

Am I saving enough for a rainy day? 

Now that you bought a home that you can afford the goal becomes saving money for a rainy day or unforeseen circumstances. For most people, the quickest way to foreclosure is a lack of emergency funds. Because we cannot predict the future it is important to have enough savings to sustain your mortgage payments in the event you lost your job or could not afford to pay your mortgage with your income check. It is a good idea to have at least 3 to 6 months worth of expenses saved to cover your essential living expenses until you can resolve your financial troubles.

Can I cover the non-traditional expenses?

Many people fail to consider the cost of non-traditional home expenses like maintenance, repairs and general upkeep. Some of the costs associated with keeping up the integrity of a home can run thousands of dollars. Roof repairs, plumbing and electrical can all be quite costly if you aren't prepared. It is estimated that you should budget about 1 percent of your total home's value towards maintenance and repair costs each year. For example, plan to spend about $2500 in repair and upkeep per year on a $250,000 home.

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