First Time Home Buyers – How NOT To Be Broke Your Whole Life

3 Apr

First Time Home Buyers – How NOT To Be Broke Your Whole Life

Take a peak at the video below to see how I got my humble start as a homeowner.

As a mortgage professional I get lots of questions in the “How much should a first time home buyer spend on their first home?”  Well, long before I was a lender for four years…  long before I was a Realtor for 7 years….  I bought my first home. 

French Avenue Front
My first home – no kidding!

I was managing the suit department of the Gentry Shoppes in Northcrest when I was a first time home buyer right here in Fort Wayne, IN.  I thought you guys might enjoy seeing my VERY humble beginnings.  As you can tell, I’ve never been a fan of peer pressure!  LOL.

Now granted, I was single, no kids, and barely 21 years old.  A one bedroom 650 square foot house for $19,900 (or something like that) may not be practical for you as a first time home buyer.  But rest assured, neither is a $225,000 4 bedroom 3,500 square foot mini-mansion!

As my mentor, Jim Rohn, used to say, “If your outgo exceeds your income, your upkeep will be your downfall.”  Amen, Jim!

Stay conservative, my friends.  As yourself, “What can I afford with my eyes closed?  What can I afford if one of us loses our job?  What can I afford on a 15 year mortgage?  What will allow me to start building my investment portfolio and still visit Applebee’s from time to time?”

And for God’s sake, whatever you do, unless you want to be broke your whole life, DO NOT ask your mortgage lender how much you can qualify for (unless it’s me, then you’re safe!)!!!  If you borrow up to the amount a mortgage lender can qualify you for you almost guarantee yourself a life of incredible financial pain and suffering!  DON’T DO IT!

My next post will be on “Mortgage Qualifying Ratios” so you can see for yourself just how much trouble you CAN get yourself into.  If you can’t wait please call me directly or shoot me an email.  I’ll be happy to pre-qualify you right over the phone at  no charge.  If you prefer more anonymity you can download a complete pre-qualification packet here.

To your abundant success,

- Chris Sanderson

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4 Responses to “First Time Home Buyers – How NOT To Be Broke Your Whole Life”

  1. donkincaid April 4, 2011 at 3:28 pm #

    Great advice. The video was a good way to reinforce the point.

    Our first home was about 900 sq. ft. in a small town. It served us well. I have to admit, it is a surprise to watch shows like “Property Virgins” and hear the complaints of no granite and no stainless.

    Just my two cents worth.

    • Tech Savvy Lender April 4, 2011 at 4:31 pm #

      Never watched “Property Virgins,” Don, but I bet it would give me a heart attack! LOL. Thanks for the comment, my friend!

  2. Christian Paulsen April 4, 2011 at 8:28 am #

    Chris,

    Sound advice! It’s good to hear from a lender who isn’t looking to milk every dollar from the client. Thanks for sharing.

    Chris

    • Tech Savvy Lender April 4, 2011 at 9:25 am #

      Appreciate the input, Chris. May have sounded like I was throwing all mortgage people under the bus… :-/ Not true, it’s just that we are helod to “guidelines” laid down by Fannie and Freddie. So, if a borrower asks how much they qualify for we have to tell them. But what you CAN get a loan for and what you SHOULD get a loan for are two wildly different numbers!

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