Quote:
Originally Posted by JAGG
Remember even if the bank will preapprove you for 200,000. That doesn't mean you should buy a house that costs that much.
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This is SUPER important to remember. I know way too many people who bought a house that cost what they were preapproved for...and then struggled financially. I have no idea why banks always overestimate what we can afford - they just do.
When I went through my "looking to buy a house phase" (I got over it and have decided to keep renting for the time being because I like the simplicity of renting) I was pre-approved for a good 50k more than what I KNOW I can afford.
Ask to see at least the last 3 months of utility bills so you have an idea of how much it'll cost you to heat/cool your home, etc. If you're in an apartment right now you -really- have no idea how much utilities in a house costs. Lord knows that I have no idea.
You -want- the total of your monthly costs (mortgage, insurance, property taxes, heat/water/electric) to be a couple hundred less a month than what you are paying as a renter. Why? Because shit happens. If your fridge breaks or a plumbing disaster happens you really do need to have that extra money socked away and waiting.
And for the love of cats...if you think there is any chance that this won't be the house you die in keep in mind the re-sellability of your house. Even if you think all you need is 2 bedrooms, a house with 2 bedrooms is infinitely harder to sell than a house with 3 bedrooms - and when the time comes for you to sell your house you'll be thanking the stars that yours has 3 bedrooms in it rather than 2.
Honestly, I think renting is pretty rad. If my oven stops working - I call my landlord. If a homeowners oven stops working - she has to pony up and buy a new oven. Fuck that.