Getting pre-qualified for a mortgage will help some understand the ceiling on their price range. However, that can be misleading, potentially getting an individual in over their head. It is equally important to understand whether the monthly payment on a new home is not only feasible for you, but also comfortable. Consider the following questions: Is it more or less than your current housing payment? Can you make the new payment without impacting your lifestyle and budget? Assuming a household’s income is never a guarantee, is there a safety blanket to maintain payments for a period of time?

With low interest rates on other "large ticket items": cars, furniture and more, I want to caution every qualifying buyer to avoid opening any new credit lines, increasing the balances on credit cards or other loans, or drawing from savings accounts that will be utilized for down payments and closing costs. This could lead to a delay in closing, or worse, cause a buyer to no longer qualify for a loan!

And don't take chances! If the economy worsens, returns on savings could be diminished, credit card limits could be shrunk, and the market as a whole may take more time to recover. These aren’t make-or-break points for every prospective buyer, but always things to consider. Your Future Financial Safety is always a point of discussion with me!

Want to talk through these questions and others?! Call me so we can truly make sure you understand and feet good about the magnitude of your purchase. I've been helping Buyers and sellers with their real estate decisions for 25 years+.

Sheila