A good friend, and ally in the business, Trey Bowden, recently posted about a topic that is near and dear to my heart. I thought I’d share it here with you, whoever may be reading, whether you’re a homeowner, or a homeowner-to-be, this is invaluable information.
You see, I’ve lost count of the number of times I’ve witnessed the exact situation Trey has described. A home buyer begins his/her search with a level head, and a good solid budget in mind. He/she has a desired monthly mortgage payment in mind when we begin searching, then after a week or two of looking around, and being discouraged by what that amount will actually afford them, they go back to talk to their lender with a question in mind; “How much more would it cost me to increase my price range?” or “How much more could you qualify me for?”
Let me assure you, those are two very dangerous questions! It’s natural for any of us to want more and to desire more comfortable, impressive surroundings, so the temptation when your lender tells you that it won’t be any trouble to qualify for more than you set out to spend, is a VERY slippery slope. JUST BECAUSE YOU QUALIFY FOR IT, DOES NOT MEAN YOU CAN AFFORD IT! Next thing you know, we’re out looking for a home that’s 50% more than what you originally set out to spend (against any advice I give of course).
As difficult as the latest changes in the mortgage industry are to stomach, they needed to occur. That’s right, even though it goes against my own pocketbook, I believe that what this country needs is a gut check; a slap of reality upside the head of ignorance, and it looks like we’re about to get it in grand fashion.
About Ryan Hukill
