Myths vs. Fact About Buying Today

Plenty of myths surround the experience of home buying. The problem is that the truisms of yesteryear may not hold true today, what with the recession of 2009, the predictions for the economy, and the transient nature of some career paths todayYou may have heard that you should “Always buy the biggest home you can afford.” One of the driving factors in buying a house is how much house one can afford. Even before touring homes for sale, smart buyers shop for a mortgage loan. The lender will provide you with a loan commitment letter specifying the maximum amount they will lend you for your mortgage.

This is the point where couples need to ascertain whether they want to invest in real estate to the max or up to a lesser amount.

That answer is purely subjective. Your NAEBA agent will take you through your preferences. Consider what is the maximum payment you are comfortable with making each month toward a mortgage. If it’s less than the loan commitment letter, turn your search down a notch and start looking at homes that meet your requirements, but may not offer all of the amenities a dream home might include. You can always move up later on, keep the first home as a rental to create a second stream of income or add on to your current home.

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