Find Out How Much Of A Mortgage Payment You Can Afford In Advance!
The article below from Kiplinger starts off by saying “Before you set foot in your first open house, find out what you can really afford to buy.” I am blown away how so many people do not prepare ahead of time. I don’t understand how someone’s first call isn’t to a Mortgage Professional to find out how much they can afford and if they even qualify. Not only are you wasting your time, you are wasting a lot of other peoples time too such as your realtor, the sellers, etc. It’s inconsiderate.
This is probably the largest asset and liability you will ever have. When I say to find out ahead of time I am not saying at 7 pm on a Friday night to get pre-approved and go out and look at homes Saturday morning or when you just got done looking at homes all day with a realtor. I am talking about days, weeks, months, depending on how much you know, make, have in the bank, etc.
I don’t care if you own a home and got a mortgage in the past. Things are different now and I am not just talking about documenting everything when it comes to the mortgage. I am referring to how much property taxes are, interest rates, reviewing income documentation and assets, etc.
This goes back to the book I read called “The Great Crash 1929” and in the first few paragraphs it states “there is more money flowing into the stock market than there is intelligence.” I feel we need to stop being a financially illiterate country and get smart about how we approach our finances.