At some point in your life, you’ll probably have a real estate appraisal done and as common as they are, there are misconceptions about them, why they are needed, and how they reflect the value of your home.
Are you ready to BUY? One of the very first things you should do is set your very own mortgage limit. Being pre-approved means that’s what you can spend up to! In our culture, some of us think “bigger is better”, and when it comes to buying a home, bigger can spell big trouble, especially if interest rates go up, or even worse, an unexpected financial situation arises! My best advice would be to resist the temptation to super-size your mortgage and keep your payments as reasonable as possible. Trust me, you’ll absolutely thank yourself later when/if something unexpected happens, and then you’ll have some “breathing room” in your budget.
If you’re like me, and are at the opposite end of the wealth spectrum haha and have had a very difficult time getting approved for a mortgage in the past, you just might enjoy this blog post!