Know what you can afford – not necessarily what you want to pay…

by jmaranto

When talking with your lender, let them tell you the maximum you can afford rather than you telling them how much you want to pay.  Why? Because it is important to know the maximum amount that you qualify for in case you cannot find any homes that you like in the price range that you have pre-determined would work for you.

Believe me, my intent is not to get my clients to buy more home than they can afford (they can’t do that anyway) or would be comfortable affording. Rather, I want them to make an educated decision regarding what homes would work best for them based on location and desired amenities, rather than settling for something in a price range that they feel would be comfortable. Often times, just by increasing their price point by $10,000 they are able to find homes that have more of what they are looking for with a nominal increase in their monthly mortgage payment.

Published on 2015-10-01 14:38:11