Yes, You May Qualify For More Home Than You Can Afford!

By
Real Estate Agent with Coldwell Banker Sea Coast Advantage

                                   

Yes, you may “qualify” for more      

home than you can “afford!”  Broken Piggybank

Even in today’s more complicated

lending environment, it’s still

common for lenders to “qualify”

Buyer’s for more than they can “afford” because the lender is calculating debt to income ratios the same for everyone but individual lifestyle determines an affordable mortgage. 

Two Buyers with the same income and same debts might live  very differently;

Eating out is generally more costly than cooking at home.  

 

Renting movies is less expensive than going to movies.

 

Running is a free hobby whereas golf can be quite costly.

 

Sending a child to private school takes a huge bite from disposable income.

 

Annual vacations requiring passports cost more than “staycations.”

 

A passion for jewelry or the latest fashion will mean sacrifice elsewhere 

 

Higher deductibles on a health insurance plan and/or chronic illness requiring drugs can involve expense as  predictable as a car payment . 

 

Buyers who understand what        Budget Calculator

they  can afford,” recognize

their take-home pay is the

starting point for a budget

factoring food, clothing,

entertainment, medical and

 incidental expenses.  They consider savings for major purchases, periods of unemployment and unplanned and/or unavoidable expenses to be part of the budgetary process. 

 

In Summary, the buyer with a budget understands they’ll qualifyfor more home than they can comfortably “afford!”

 


 

Posted by

Beverly Femia

The Femia Team


"With Us, It's All About You!"

 

Beverly Femia

 

 Coldwell Banker Sea Coast Realty

1001 Military Cutoff Road, Suite 101 Wilmington, NC 28405

Fax to 1-866-784-3089 (Toll Free)

Beverly Femia

Broker / REALTOR®

Email:Bev@CoastalAreaLiving.com

Phone:Bev at (910) 279-9794

Search:Wilmington Area Propertywww.CoastalAreaLiving.com

 

 

 

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Topic:
Lending / Financial
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Comments 4 New Comment

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Anonymous #1
Anonymous
Anonymous

....Friday’s child is loving and giving,
Saturday’s child works hard for his living

It's Sunday

November 06, 2011 01:20 PM
Rainmaker
278,729
Dianne Goode
Realtor/Broker
Raleigh Cary Realty

Good post!  It's a wise buyer who chooses a home in line with other lifestyle choices.  I am always glad to hear my client say, "Well, the bank says we can afford up to $X, but we feel  more confortable staying under. $Y."   That's  a much better place to start from than, "How much can we get??"   A mortgage is not free money == it literally comes at a price.

 

 

November 06, 2011 10:40 PM
Rainmaker
1,371,424
Joan Cox
Denver Real Estate - Selling One Home at a Time
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373

Beverly, love your approach to how buyers get qualified and what that all means!   Getting qualifed and the amount you feel comfortable with are two different animals!

March 30, 2012 05:05 PM
Rainer
112,835
Beverly Femia
Broker Realtor Stager - Greater Wilmington, NC Are
Coldwell Banker Sea Coast Advantage

Hi Joan,  This piece didn't attract much notice and that, in itself, is interesting.  I think I'm singing a song most don't want to hear!

March 31, 2012 07:13 AM
Show All Comments
Rainer
112,835

Beverly Femia

Broker Realtor Stager - Greater Wilmington, NC Are
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