Posted on
December 16, 2007
at
12:13 am
Years ago, I worked as a real estate agent, and many people were tempted to start shopping for homes at the top of their price range. Just because the mortgage lender preapproves you for a certain amount does not mean it's a good idea for you to spend that amount. Take a good look at how the monthly payment will impact your overall budget, and if you're realistic, you'll probably realize that's more money than you want to spend every month.
Posted on
December 16, 2007
at
12:48 am
That's something I've always debated.. It good not to be stretched too tight on your budget, but real estate is generally a good investment too, so I'm not so sure it's a bad idea to buy at the top of your price range.
Posted on
May 7, 2008
at
8:50 am
I'd say it's not always a good idea to buy at the top of your price range. The bank I work for gives people their outside borrowing capacity (highest borrowing limit) on purpose, knowing people will get all snotty and try to buy the biggest, best and brightest they can find. It's called "Profit Making" for a bank. I personally try to talk to my customers about seeing what they can logically afford on just ONE income - so the other income can be used for savings or raising kids or paying off debt quicker...
Posted on
June 5, 2008
at
2:04 am
Yes, everybody does indeed goes for the maximum loan that they can afford. Even though the bank can approve your loan for it, when economic downturn comes, you might find yourself in big trouble in paying off those load.Your house might be auctioned off if you cannot keep up with the mortgage. I guess there are many cases in the States right now. It is always better to be moderate in whatever we do than to be sorry.
Posted on
July 7, 2008
at
5:49 pm
Living beyond one's means is never a good idea. Real estate can also be a liability when you can't afford the mortgage and the maitenance of a property. Property doesn't always increase in value. Look carefully for your property and buy according to your means not your wants. My parents lived in an ordinary suburb. Their neighbours were people who came from an expensive suburb because they were living beyond their means. They said the peace of mind this move gave them was invaluable.
Posted on
December 8, 2008
at
3:29 pm
We are in a home below the price range that was offered to us when we bought. I am very happy for that because of financial changes we can afford the home we now have, but had we gone for a higher priced home, we would be in deeper trouble than we are right now.
Posted on
April 6, 2009
at
8:12 pm
In my opinion you shouldn't go for the biggest and best house. Try to find one in a good location with good bones. You can always add on in the future and do improvements. With the economical unstability worldwide I would play it safe rather than sorry.
