“How much do I qualify for?”
If you are thinking about buying a home, or have bought a home in the past, this question has probably crossed your mind. Our office certainly hears this in almost every meeting, and with every new client who walks through our doors looking for a home.
However, it is a question you shouldn’t be asking.
So why shouldn’t we be asking this question?
How Do The Lenders Qualify Us?
Lenders and financial institutions look at gross income and calculate how much of a risk you are as a borrower. They do not consider factors such as lifestyle, standard of living, number of children or extra expenses.
By asking “Do we qualify?” instead of “How much can we afford?” we place ourselves in a position where the financial institution dictates what is in our best interest. Yet, they know very little about our financial lives and stories.
Why should we trust these institutions to control one of the biggest financial decisions in our lifetime, especially when they don’t consider some of the most important aspects of our financial lives!
What Role Does More than Enough Play?
More than Enough approaches the home buying process more holistically. We are Financial Fitness Coaches first, and then Mortgage Agents. Rather than adapting your lifestyle to a new home, we want the new home to fit your lifestyle! Below are some practical things which allows you to discover the home you can afford.
FACE your Finances
FACE- Financial Awareness Creates Empowerment.
This is one of the core principles of More than Enough and it is very important when making any major financial decisions as you take stock of your financial reality. For a great blog on what this means click here.
Sit Down with a Mortgage Agent
Before you fall in love with your dream home, sit down with someone who will help determine the house you can afford. At More than Enough, we use a great tool called the Financial Health Assessment which allows our office to show you where you stand. By doing this before house-hunting, you will have a strategy and a goal in mind to avoid spending more than you can afford.
Don’t be Afraid of the Tough Questions
It takes time and planning to think through all of the aspects of buying a home. More than Enough has helped hundreds of people in this process which can be overwhelming. Don’t be afraid to ask the tough questions and face your current reality. Our coaching and mortgage staff are here to walk alongside of you. Our responsibility is to answer your questions and walk with you through the process.
A little bit of preparation can go a long way when buying a home. Having someone to talk through each step is invaluable. We want to create a home-buying experience which is enjoyable and fits with your financial purpose. If you have questions or are interested in creating a home-buying strategy please contact our office here.