Don’t Make this Mistake When Buying a Home
Don't Make this Mistake When Buying a Home
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Mortgage Pre-approval without Education = Wasted Time & Headaches
Verify my mortgage eligibility (Jun 27th, 2026)When buying a home, early education personalized to your situation is a must to ensure you're headed down the right path and not going to be surprised by payment or funds to close when you win a contract.
My clients started with another lender that told them they were pre-approved to purchase a $300,000 home with 10% down payment ($30k). They looked at a handful of homes and their agent realized they had no idea on the numbers and strongly encouraged they chat with me to get properly educated, comfortable and confident.
Despite their reluctance to chat, we finally connected where they told me they had $33,000 in the bank and didn't want their payment higher than $1,800. I told them at a $300,000 purchase price with 10% down they would need roughly $37,000 (remember they only have $33k) when including closing costs and prepaid items and their payment would be around $2,200 (this was several years ago when rates were lower). They couldn't believe the other lender pre-approved them for a scenario that required more money than they had and at a payment they said they weren't comfortable paying.
Long story short, we adjusted their down payment to 5% down to leave more money in their bank account for peace of mind and comfort and we adjusted their purchase price from $300,000 to $250,000 to get the payment at $1,750 and below the $1,800 max they always wanted.
Not all lenders are created equal, don't find that out the hard way.
Let’s chat even if buying is way down the road, it's never too early to have a conversation.
#shorts #firsttimehomebuyer #preapproval #mortgagepreapproval #mortgageeducation #househunting