Just because you’re pre-approved for a certain amount doesn’t mean that you can afford it. Here’s what I mean.
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Today I wanted to talk to you about a very common question I am asked, “Why am I shopping for less than my pre-approval amount?”
When you are looking to purchase a home, there are a few different things you need to realize. The first one is that the amount that you are pre-approved for is not necessarily the amount that you want to spend on a monthly basis.
This little pointer will help make sure that you stay on budget and do not get overwhelmed by payments.
The max pre-approval amount is unimportant. The max monthly mortgage payment is what you really need to look at. You should be comfortable with the amount you are spending each month on your home. You may be able to get approved for $300,000, but you may not want to deal with the payment that goes along with that price. Find out what you are comfortable spending on your mortgage on a monthly basis, and ask your lender what home price that equates to.
This little pointer will help you stay on budget and make sure that you do not get overwhelmed by your payments. If you have any questions about this or have any other real estate needs that I can help you with, please feel free to give me a call or send me an email. I look forward to hearing from you soon.