The US Federal Government reached their debt limits tonight. The Federal Government's budget is more complex than a standard household budget, but the same concepts remain:
Do you spend more than you earn?
- Do you consider personal budgets when you work with buyers?
- Do you discuss with buyers what they can afford to spend each month, as opposed to what they are pre-qualified to purchase?
- Do your buyers understand how different types of mortgages alter their monthly payments?
I have this discussion early in my relationship with my buyer clients. While so many agents focus on the purchase price, they ignore the monthly budget of the buyers. For a home-buyer, this number is crucial.
I hope our government exercises the needed fiscal restraint to balance our budget and manage our debt. I help my clients each do the same.
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