Between 2000 and 2007 many home buyers bought homes that they could not afford but were able to buy with creative financing. So, today we have the huge drops in the market because these people are losing their homes . They bought homes that were well beyond their reach. Imagine if these home buyers would of only bought homes they could actually afford? We would not be in this mess and neither would they.
So buying what you can afford is not settling but making a wise long term decision. If you buy what you can afford than the chances of you losing that home in a downturn are much smaller than if you overreach. In today's market, what you can afford is most likely a better home than what you could have afforded a few years ago anyway.
What do you think?
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