You may have seen the headlines lately:“Home prices are dropping.”“Denver is leading the decline.”“More than half of major metros saw year-over-year price drops…
Buyers: How Much Can I Afford?
Dated: August 29 2023
Views: 48
Plot twist: You're nervous you won't be pre-approved to buy a home but end up being approved for a LOT more than you ever planned on spending. 🤯
This happens more often than you think. Because lenders consider more than just your credit score, it's not uncommon to find out you're pre-approved for thousands and thousands of dollars more than you ever dreamed of spending.
So what should you do?
It's tempting to throw caution to the wind and start looking at homes near your top dollar, but I always remind my clients to think about their lifestyle and spending priorities.
For example, do they go on an annual vacation with their family they need to save for throughout the year? Do they get their hair and nails done each month? Do they spend money on entertainment like going to the movies or trying new restaurants every weekend?
It may seem silly, but these "little" expenses add up every month, and if you really don't want to give them up anytime soon, you need to give yourself some margin in your budget so that you can keep up with your extra expenses.
Moving into a big, beautiful house becomes a lot less exciting when you can't afford to do anything outside of it. Your new home should bring FREEDOM, not make you feel captive to your monthly payment.
If you're planning on moving later this year, start making a list today where you track your expenses, both necessities and extras. This way, when you start the buying process, the budget YOU feel comfortable with is clear and you can buy a home with confidence (and keep up with your monthly balayage and blowouts!) 💇🏻♀️.
Angelica Olmsted
Angelica’s path into real estate is rooted in a life full of diverse experiences and a deep appreciation for what “home” means. Growing up as an Air Force brat meant constant moves, and later, h....
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