Step 4: What Are You Spending Monthly Now, and How Is That Working For You?
How much are you comfortable spending each month? Have you thought that out already? That’s a question 
only you can answer. In years past, there were certainly homeowners who felt they’d been pushed into borrowing more than they should have, blaming the lender or real estate agent. Frequently, however, there have also been homeowners choosing to overspend on their own. At any rate, if someone tells you they can approve you for more than you think you want to spend, take a step back and think about your own level of comfort for the foreseeable future.
Stop and sort out what’s best for you. And think monthly, because that’s generally how bills are paid out, and how paychecks come in. Know your monthly expenses, including both your needs and the wants that you determine are the most important to you. Coming up with your own preliminary numbers before talking with a lender will give you a baseline to start from. There will always be some room for fluctuation with the amount of the mortgage, the assets used towards the down payment, the interest rate on the loan, but again, it’s a good starting point.
I find that when my buyers understand that I’m their Realtor for the long haul, not just for this transaction but for all of their real estate questions and needs into the future, their appreciation and trust in me naturally rise. I want them to be reminded that they love their new place every time they come home, and to know that I did everything I could to ensure that’s how they would feel. And in their best interests, I choose to work with lenders who operate with a similar mindset, ensuring that my clients are well taken care of from the very beginning.
Did you miss the first three Steps to Buying a Howard County Home in 2011? Step 1 | Step 2| Step 3
Best regards, Gretchen
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