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So, you did the responsible thing and got pre-approved for a mortgage before you started looking at houses.

Congratulations! That is an excellent first step for more than one reason. Your offer will be taken more seriously, and you know how much you’re able to spend on your house. We see home buyers trying to decide if they should offer the full amount of their credit limit or not and we usually try to steer them to buy less house than they can afford for the following reasons. 

Your Budget 

Just because your excellent payment history and income qualify you for a $400,000 home, doesn’t mean your budget allows you to afford the payments that come with it. Go through your budget and figure out what you’re comfortable spending each month and stick to it.

The Market 

Housing prices might be high now, but it is hard to predict if and when the market might take a dive, and you’re stuck in your house owing more than it is worth. 

Bigger Means Costlier 

If you’re looking at a larger house than what you currently have, remember that all of your other expenses will probably increase too. Other expenses include your heating and cooling bills, property taxes, and furnishings. Repairs will also cost more. A bigger house has a more massive roof, and if you need to repair that, it will cost you more. 


Are you spending so much on the monthly mortgage payment that you’re foregoing saving for the future? This includes your savings and retirement accounts. You want to retire someday, so make sure you’re putting some away for that day. 

While mortgage companies do a good job to look at all of your income and debts, they still don’t know how you want to live your life. Do you want to help your kids pay for college, or maybe you want to travel frequently? These things affect how much you feel comfortable paying each month for your house. Be sure you think about your lifestyle and what that looks like in terms of a monthly mortgage payment. If you’ve got any questions about your credit limit, or are ready to start searching for your home, call Robinson and Co. Realty today (970) 858-9870!