Why Is Monthly Payment More Important Than Price For A Home?

When I am dealing with a home buyer the toughest question is what price range are you looking to be in. But, it really is not a tough question. Because it is one a Realtor should NEVER ask you. It is completely irrelevant to ask someone what price range they are looking in. What we need to know is what are YOU comfortable affording for a monthly mortgage payment. There is a big difference between price range and monthly mortgage payment. People that have owned homes in the last 10 plus years are thinking that they are paying $1000 a month right now for their home that cost them $130,000. So, if they want to go to $1200 a month on a payment with the equity they receive out of their house then they can only look at a $150,000 range for a home. Well the reality is with interest rates as low as they are right now; at $150,000 in Charlotte, NC. you would be paying less than that for a mortgage payment. You probably can go up to $200,000 range (depending on taxes) and achieve the same payment you are looking for. That additional $50,000 opens up a whole new area of homes for you to search. You always need to talk to a mortgage broker about getting pre-qualified...However; your Realtor should be able to give you an estimate of what the price area you can look in based on what you are comfortable a month paying. i am just shocked when people tell me that they never heard it that way before....I work with a general rule of thumb. If you can afford that now and are paying your bills on time and have money saved you should be able to get approved....So far; it has worked for me. The answer here is simple....a great realtor will ask you what are you comfortable at a month not what price range you are looking in.....because it always boils down to how much a month do you want to pay; not what the price is...... Dave diCecco Realtor/Broker www.davedicecco.com