Don’t be house poor, buy what you can afford.
This is exactly something I was thinking about blogging about in the near future. Just because you are approved for more, doesn't mean you should max out your buying power! And just because the situation will allow you to buy that house with an RD loan with zero money down, doesn't mean that having zero equity is a good idea! I'm going to be discussing this more in future posts...stay tuned!
Don’t be house poor, buy what you can afford.
Just recently I was speaking with a young couple and they had just returned from their big box bank. They were so excited to learn they had been approved for a good bit more than they had originallyanticipated. I could easily see they were armed and ready to spend the max. I really wanted to share in their excitement but I am going to be their Albuquerque Realtor and they needed some solid guidance going forward.
Obviously this is great news and you’re now pre-qualified and ready to proceed but consider this. Don’t be house poor, buy what you can afford! They said, “ But John the bank said we can afford more now.” I understand, but just because you are approved for more does not necessarily mean you should spend more. When we first talked you had a budget in mind, we talked about current expenses, student loans, car payments and you have plans to grow your family. I really think we can find you a home that fits your budget without spending the approved maximum. You still want to have a life, enjoying social events, date nights and vacations. You also need to be saving for your future and that planned family. When buying your first home be wise, consider all things in reasonable perspective and Don’t be house poor, buy what you can afford.Albuquerque Homes and Lifestyle Blog
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John McCormack Owner/Managing Broker, e-PRO
505-980-4576 / John@AlbuquerqueHomes.com
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