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Ambassador
2,178,553
Carol Williams
Although I'm retired, I love sharing my knowledge and learning from other real estate industry professionals. - Wenatchee, WA
Retired Agent / Broker / Prop. Mgr, Wenatchee, WA

Don't max out on "affordability" based on income.  Leave a cushion and pay down the mortgage early to build equity faster.   And/or use the extra income for consistent investing.  The is MY short answer but I am not a financial consultant so take it for what it's worth... FREE advice.  LOL

Jul 08, 2017 08:08 AM
Rainmaker
2,220,323
Anthony Acosta - ALLATLANTAcondos.com
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

I let the licensed mortgage broker address anything that has to do with financing.

Jul 08, 2017 03:36 PM
Rainmaker
5,772,575
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

I agree with Carol Williams .  This is sage advice. 

Jul 08, 2017 12:19 PM
Rainmaker
1,543,634
Thomas J. Nelson, REALTOR ® e-Pro CRS RCS-D Vets
Big Block Realty 858.232.8722 - La Jolla, CA
CEO of Vision Drive Realty - Coastal San Diego

Get pre-approved! Then I let my man Jason E. Gordon give Mortgage Advice, I give housing advice...we stay within our licenses when it comes to advice.

Jul 08, 2017 09:43 AM
Rainmaker
3,071,489
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

Anthony Acosta - ALLATLANTACONDOS.COM nailed this one!

Jul 09, 2017 05:50 AM
Rainmaker
3,988,007
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

Don't buy more than you need. Just becasue you can afford it doesn't mean you need it.

Jul 08, 2017 06:49 PM
Ambassador
5,229,945
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

I love Carol Williams' answer and I would add, refer them to your top lending professionals. They are a wealth of knowledge in this part of our business and I lean on them to get my buyers ready to purchase a home.

Jul 08, 2017 05:18 PM
Rainer
382,309
Sally Lawrence
Advantage Real Estate - Tehachapi, CA
Broker, CHS, e-Pro, SFR, REALTOR®

Hire a REALTOR® you trust and work with a qualified lender to make sure you truly understand the parameters of the loan.

Several folks have recommended, "pay down debt" but I recommend not doing that before working on the pre-approval.  In my market, there are many first time buyers that are so tight on funds they need to keep the debt and save the cash for closing costs and down payment.

My primary lender and I sit down with buyers together and work out the best strategy for them.  

Jul 08, 2017 03:57 PM
Ambassador
3,587,960
Anna "Banana" Kruchten
HomeSmart Real Estate - Phoenix, AZ
602-380-4886

Know your numbers! Work with a trusted lender and follow his/her advice.

Jul 08, 2017 02:12 PM
Rainmaker
5,583,278
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

don't stretch it to the limit...you need to breathe.... 

Jul 08, 2017 11:28 AM
Rainmaker
809,258
Kasey & John Boles
Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com - Boise, ID
Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties

Talk to a financial advisor, mortgage consultant, accountant, tax/financial attorney. -Kasey

Jul 08, 2017 09:07 AM
Ambassador
2,684,009
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

Talk with at least one mortgage lender.

Jul 08, 2017 08:29 AM
Rainmaker
1,617,916
Harry F. D'Elia III
WEDO Real Estate and Beyond, LLC - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

pay off debt

Jul 08, 2017 07:10 AM
Rainmaker
1,712,676
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

Don't max out and consult with a professional about a budget.

Jul 08, 2017 06:46 AM
Rainmaker
5,868,482
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Stay within their budget!  

Jul 11, 2017 05:54 AM
Rainmaker
763,883
Tony Lewis
Summit Real Estate Group - Valencia, CA
Summit Real Estate Group Valencia & Aliso Viejo

Don't leave yourself house poor.  Home ownership is a blessing but if you are unable to enjoy life due to the monthly payment you have made a major mistake.  It is not how much you can afford, it's how much can you afford and still enjoy life.

Jul 10, 2017 08:44 PM
Rainmaker
544,014
Dave Halpern
Dave Halpern Real Estate Agent, Inc., Louisville, KY (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

Careful not to overspend because the mortgage broker approved you for an amount he said you can afford. You are in charge of your finances, not the mortgage broker.

Jul 10, 2017 03:37 PM
Rainmaker
634,531
Jason E. Gordon
CMG Mortgage, San Diego, CA - San Diego, CA
Sr Loan Officer, CMA, CMPS, CDLP, CDRE, RCSD, CDPE

At the risk of sounding "self serving" the logical first step in the home buying process is to get pre-approved. Not only does this process provide clarity for the Buyer in terms of their ability to perform on the open market, but it begins a strong dialog with their Lender. A good Lender will utilize this opportunity to dig deeper into identifying a reasonable budget for the Buyer to consider, while elaborating additional monthly costs associated with home ownership (taxes, insurance, HOA, etc.).  The following AR Post details the initial first steps:

http://activerain.com/blogsview/4899160/pre-qualification-vs-pre-approval-vs-cross-approval-vs--10k-assurance

Thank you for the mention Thomas J. Nelson, Realtor,CRS,ePro!

Jul 10, 2017 08:56 AM
Rainmaker
4,936,605
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Have 3 lenders you work with that know what programs are out there.

Jul 09, 2017 09:22 AM
Rainmaker
4,800,082
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

Are you asking or answering?

Jul 09, 2017 05:35 AM
Rainmaker
4,319,419
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Thanks for sharing Mike Albert.

Jul 08, 2017 10:51 PM
Ambassador
6,393,179
Bob Crane
Woodland Management Service / Woodland Real Estate, KW Diversified - Stevens Point, WI
Forestland Experts! 715-204-9671

Never maximize your potential lending limit, start small and work up to the dream home.

Jul 08, 2017 08:24 PM
Rainmaker
3,986,258
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Buy less than you qualify for.

Jul 08, 2017 07:47 PM
Rainmaker
7,836,134
Roy Kelley
Retired - Gaithersburg, MD

Get pre-qualified.

Jul 08, 2017 04:00 PM
Rainmaker
1,622,432
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

Not a mortgage affordability, but the whole loan process: read all disclosures and check all numbers carefully, so there are no surprises when you are about to close. I just had it with BofA who hit my client with outrages closing costs that were not clearly disclosed. Just disgusting how they work, promising low rates and 0 points, yet, they are always paid well, do not make mistakes about that. 

Jul 08, 2017 12:24 PM
Rainer
65,378
Steve Bracero
Heisler and Mattson - Shrewsbury, MA
First Time Homebuyer and Investor Specialist

id say don't max out on the pre approval... if possible pay down some debt before making the purchase 

Jul 08, 2017 11:04 AM
Rainmaker
1,502,998
Ryan Huggins - Thousand Oaks, CA
https://HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Just because you qualify for more, doesn't mean you can afford it.

Jul 08, 2017 10:20 AM
Rainmaker
529,983
Kathryn Acciari
Central One Federal Credit Union - Shrewsbury, MA
Mortgage Loan Originator

Regardless of the amount that you are pre-approved for, only spend what you can comfortably afford.

Jul 08, 2017 09:28 AM
Rainmaker
2,781,173
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Don't rent but if you insist, save your money. Reduce expenses as well

Jul 08, 2017 07:55 AM
Rainmaker
1,725,996
Sandy Padula & Norm Padula, JD, GRI
HomeSmart Realty West & Florida Realty Investments - , CA
Presence, Persistence & Perseverance

Do not max out on the approved limit.

Jul 08, 2017 07:48 AM
Ambassador
3,345,091
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

Consult with a local mortgage broker.

Jul 08, 2017 07:48 AM
Ambassador
5,049,058
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Consult with a qualified mortgage professional who can provide guidance about the best program. Be sure to consider your personal budget when considering your monthly expenses

Jul 08, 2017 07:41 AM
Rainmaker
5,216,398
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Consult with an experienced loan officer who can provide a variety of options and help select the best alternative for that buyer!

Jul 08, 2017 06:54 AM
Rainmaker
5,104,931
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Get advice from a top mortgage professional.

Jul 08, 2017 06:53 AM