(Closed) Home Shopping FRUSTRATION!

posted 6 years ago in Home
Post # 3
Member
2232 posts
Buzzing bee
  • Wedding: September 2012

You’re right, 20k is not going to make that much of a difference when it comes to mortgage payments.

You can definitely go and get pre-approved for a new amount. In the end it’s just a pre-approval.

Just make sure you’re comfortable with the extra amount!

Post # 4
Member
1659 posts
Bumble bee
  • Wedding: July 2012

So our first preapproval was written like yours – almost $200k more than what we wanted to pay, so we asked for one written for much less than what we could actually afford so our realtor would actually show us houses that we wanted to pay for.  It turned out we wanted to be about $20k higher than what the letter was written for, so they easily wrote us a new preapproval and we were fine.

$10k doesn’t make a huge differece in your mortgage – I say up your search by $20-$30k (you can always offer less, depending on what your market is like) and see where it gets you!

Post # 5
Member
14558 posts
Honey Beekeeper
  • Wedding: June 2011

20k is not going to make much of a difference, especially at todays rates.  We talked to our loan officer before looking as well, and he did not even bother to give us a preapproval.  Like you guys, we had figured out our numbers we’d be comfortable with and he told us no probably, we could get approved for much more.  And then his process was to basically give us a preapproval letter for each house we wanted to bid on, for the exact price we wanted it for.  We ended up with a house 20% over our original set budget becaue we just couldnt find anything we were happy with in our first target.  We can still easily afford it and love our home…. so obviously, my vote is to go for it if you can find something you love and it’s still affordable, esepcially if you plan on staying for a while.

Post # 6
Member
9659 posts
Buzzing Beekeeper
  • Wedding: April 2019

i agree with PPs that 20k isn’t going to make much of a difference and you could get a new pre-approval. but if you don’t feel comfortable doing that and would prefer to stick to your current budget and still get the type of house you both want you may have to search a little further out of your desired search area (i watch way too many house search shows!!)

Post # 7
Member
3471 posts
Sugar bee
  • Wedding: July 2012 - The Gables Inn, Santa Rosa, CA

I would ask your FI– what is the actual difference, what would it take in your monthly finances to make him comfortable with it. 

What ever you do, DON’T buy a house that you’re not both happy with– that is a recipe for disaster and will eventually be a cause for resentment down the road.  

And you can always get bumped up in your pre-approval. When Fiance and I were shopping, we knew $300k was our limit, but when they said we could pre-qual for $320k we jumped at the opportunity, because the last thing we wanted was to miss our dream house for $301k.  We ended up finding our dream house for $309 and neither of us regret the decision, and the extra bump in the mortgage was hardly anything for us once all the numbers shook out.

Post # 9
Member
7311 posts
Busy Beekeeper
  • Wedding: October 2011 - Bed & Breakfast

You need to buy a house that you are both happy with at a price that you are both happy with. Finding that sweet spot can definitely be a challenge, but it happens every day. You need a lot of patience and creative thinking. Re-examine your finances and see if there is any room for negotiation on your monthly budget. If there is, meet with your loan officer and find out how much that extra monthly wiggle room could increase your purchase price, and go from there. We ended up increasing our price by $50k (a 12.5% increase) over the 18 months that we were in the market. But increasing the price didn’t change our monthly payment because interest rates decreased over that same time period. So we were able to spend $50k more without changing our monthly payment. And if there really is no wiggle room, maybe you need to expand your search area or see if there are any “must haves” on your list that you could be happy living without. Like, is there a particular reason why you must have a home that is less than 20 years old? What, from your perspective, is the difference between a 20 year old house and a 30 year old one?

FWIW, Mr. LK and I went through similar struggles, except that we had significant style differences. Houses that worked for him made me cringe. And houses that I liked didn’t feel homey to him. We kept communicating, looking, weighing pros and cons, etc. and eventually found a house that we are both head over heels in love with.

Post # 11
Member
13096 posts
Honey Beekeeper
  • Wedding: July 2010

Go get a pre-approval for higher.  Assuming that you guys are comfortable with what those monthly mortgage payments would equal out to.

When we got pre-approved, we took our absolute max we thought we want to pay and asked to get pre-approved for about $25K higher.  Just to give us some wiggle room if our dream home ended up being a few thousand over our preconcieved max.

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