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I was pre-approved for way more house than I could actually afford.
The bank said I could borrow up to $425,000, and I almost made an offer on a place at that price. My buddy, who bought a place two years ago, sat me down and showed me his monthly budget with the mortgage, taxes, and a new roof he had to pay for. How do you figure out your real budget, not just the bank's number?
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grantp288d ago
Man that is such a real story, it happens to everyone. Banks just look at the top number you can maybe pay back, not your actual life with bills and broken stuff. Your buddy did you a huge favor showing you the real math. Figuring out your own number before you even look is the only way to not get house poor.
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lucasw8215d ago
My realtor told me to take the bank's number and cut it by at least twenty percent. She said taxes and insurance always go up, and you need a buffer for repairs. I used an online calculator that added property tax and home insurance to the payment, and it was a real shock. That showed me my true monthly cost before even talking about maintenance or utilities. Now I'm looking at places listed for about three hundred thousand instead.
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