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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Rainmaker
437,009
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
743,411
Suzanne McLaughlin
Wright & Sherburne Counties 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
437,009
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
562,766
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
437,009
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
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JL Boney, III

Columbia, SC Real Estate
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My blog is simply a place for people find out my thoughts and feelings on a variety of topics. Anything from real estate and bussiness to life in general. Please feel free to search any and all of my blogs and leave as many good or bad comments as you like. Real Estate Blogs - BlogCatalog Blog Directory Subscribe to JL Boney's Columbia SC Real Estate Blog by Email Add to Technorati Favorites