Just Because you can Afford it, doesn't mean you Should Buy IT

By
Real Estate Agent with Russell and Jeffcoat

Columbia, SC Homes for Sale One of the first things I advise potential home buyers to do when searching for a home is to speak with a lender. This will help someone searching for a future home know where they need to start looking and what they can expect to get within their price range. If you're a first time home buyer, then chances are you will learn a lot from your talk with the lender.

 The next thing that I advise buyers on, is that just because you can be approved for a certain amount, doesn't mean you should spend that amount. In fact, you should never buy at the top of your range.

Columbia sc homes for sale

 It's very easy to get excited about the search for a new home, and I consider myself lucky to be in a career that affords me the right to see people experience that excitement. However, sometimes you to think rationally and your price range is the first place you can start that process. If you can be approved for $200,000, then you should think seriously about looking at homes in a lower price range and see what you come up with.

 Who knows, you may find a home that works just fine and costs $20,000 to $30,000 less than your top range. When you buy at the very top of your price range, you run the risk of being what people call house poor. That means you can afford your house, but not much else. So, what if your car breaks down or you have an emergency? It's always best to give yourself a little cushion in case you need it. You may never have a problem, but it's better to have it and not need it, than it is to need it and not have it.

 

 

www.jlboney.com

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Topic:
Home Buying
Location:
South Carolina Richland County Columbia Forest Acres
Groups:
M.A.N.C.R.O.W
Posts to Localism
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Tags:
columbia sc homes for sale
first time home buyers in columbia sc
homes for sale in columbia sc
northeast columbia sc homes for sale
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Ambassador
1,028,438
Celeste "SALLY" Cheeseman
RA, CRS, Hawaii Mililani Oahu Real Estate
Century 21 Liberty Homes

The monthly budget....indeed comes into play for all.....if someone has great credit and a hefty down payment...of course they can get preapproved for something grand. But how much do they want to spend per month on a mortgage payment? Yup....it doesn't mean to buy it because they qualify...but if they're comfortable with the payment.

July 24, 2009 12:04 AM
Ambassador
1,644,941
Richard Weisser
Richard Weisser Coweta Newnan Homes for Sale
Better Homes and Gardens Real Estate Metro Brokers

JL...

I would like to think that the days of stretching the spending limit to the extreme is gone for good. That's a big part of what got us into this mess!

July 24, 2009 06:45 AM
Rainer
320,761
Chip Jefferson
Gibbs Realty and Auction Company

I had to actually talk a guy out of making an offer. He was stretching way hard to afford my listing. Sorry to all but I just couldn't do it. And I wasn't low balling the seller to see if they would bite. There home was worth every dime!

July 24, 2009 07:26 AM
Rainmaker
703,330
Claude Cross
Charlotte NC Homes For Sale
Claude Cross-Charlotte NC Real Estate(Homes By Cross, Inc.)

Mortgage poor is just plain poor. It is about the monthly payment.

July 24, 2009 08:51 AM
Rainmaker
591,494
Laura Giannotta
Your Realtor Down the Shore!
Keller Williams Realty - Atlantic Shore

Very good advice JL.  I still find lenders encouraging buyers to go to the max, and I'm stuck trying to rein them in.  When you add taxes, maintenance and an emergency fund, they sometimes get the picture!

July 24, 2009 09:10 AM
Rainmaker
563,876
Mike Saunders
Lanier Partners

JL -when I was a civilian, I walked away from realtors that kept trying to sell me up! Excellent advice.

July 24, 2009 10:54 AM
Ambassador
1,405,368
Anna Banana Kruchten
Phoenix Real Estate Agent, CRB, CRS 602-380-4886
Phoenix Property Shoppe

JL- so right on. Buyers need this kind of advice!

July 24, 2009 11:10 AM
Rainmaker
437,217
JL Boney, III
Columbia, SC Real Estate
Russell and Jeffcoat

Sally- Budget is the key word.

Richard- I think you're right my friend.

Laura- I think you did the right thing for your client.

Claude- Yes it is.

Laura- You just have to paint the full picture, then it come in clear.

July 24, 2009 01:43 PM
Rainmaker
437,217
JL Boney, III
Columbia, SC Real Estate
Russell and Jeffcoat

Mike- I can't say that I blame you one that one.

Anna- I certainly think so.

July 24, 2009 01:44 PM
Rainmaker
313,115
Liz Loadholt
Realtor--Broker-in-charge - Trainer--Relocation Director Covering SC
Liz Loadholt- AgentOwned Realty- Covering SC

JL --- very good advice for buyers ---- they should not stretch themselves --- good for you and for Laura for the "great" sales people.

Mama Liz's Signature

July 24, 2009 02:38 PM
Rainmaker
437,217
JL Boney, III
Columbia, SC Real Estate
Russell and Jeffcoat

Liz- Never stretch yourself too thin, it's a recipe for disaster.

July 24, 2009 02:54 PM
Ambassador
802,536
Suzanne McLaughlin
Sabinske & Associates, Realtor
Sabinske & Associates, Inc. (Albertville, St. Michael)

JL - I often tell new buyers my story.  I was approved for a huge amount...way more than I was comfortable with.  I had a great job with a national company.  My significant other had a great job, too.  However, I knew that we wanted ultimately to be able to afford the home on one income, god forbid, something should happen,..death, divorce or disease.  So, I found a nice home that we could well afford, and it has brought us an enormous sense of joy, accomplishment and satisfaction.  And, we can sleep in it at night not worrying if we can make the payment even on my little realtor income.  A lot of ill has come from falling in love with beauty and having to deal with the beast.  IMHO. 

July 25, 2009 08:29 PM
Rainmaker
437,217
JL Boney, III
Columbia, SC Real Estate
Russell and Jeffcoat

Suzanne- There's a lot to be said for being comfortable with your mortgage payment. You never know what the future holds, so it's best not to stretch yourself to the max.

July 27, 2009 11:33 AM
Rainmaker
583,210
Sharon Lee
Sharon Lee's Virtual Assistance

Hi JL-This is definitely sage advice and if all folks would give and take that advice there would be a lot less foreclosures. There is nothing as comforting as knowing you have money in the bank and are not stretched beyond your means. Great post my friend. <SMILE>

August 01, 2009 09:18 AM
Rainmaker
437,217
JL Boney, III
Columbia, SC Real Estate
Russell and Jeffcoat

Sharon- People need to know what they can truly afford, not what they can be approved for.

August 03, 2009 01:07 PM
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Rainmaker
437,217

JL Boney, III

Columbia, SC Real Estate
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