On my drive to work today, I heard a disturbing radio commercial. The commercial was from a local bank stating they give free pre-approvals for home purchase mortgages as well as determine how many homes you can afford.
No bank can determine how much of a mortgage payment YOU can afford. A bank can determine if you make enough to qualify but this is an entirely different thing. For example, if you apply for a mortgage loan creating a payment of $2,000 with an income of $3,000, the bank will deny your request since your income is too low.
Be a savvy consumer when buying a home. Don’t rush into anything until you sit down and figure out a budget. When creating a budget, keep in mind the additional cost of utilities, real estate taxes, insurance, and home maintenance. By determining a budget upfront, you determine what you can and cannot afford. By doing this in advance, you take out the risk of making an emotional decision by entering into a home contract you really can’t afford. Once you determine how much you can afford, you can work with a Real Estate Agent who will only show you homes that fit within your budget.
Credit Reporting / Scoring Expert, Chris McConville is the President of Credit Education at CureMyScore.com and founder of myexpertcreditwitness.com where he works as an Expert Credit Witness in both Federal and State Court. With working in the credit and mortgage fields since 1991, he’s dedicated to sharing his knowledge to educate consumers.
