Had a weird conversation today with someone looking to buy a house, who is only looking at homes at the top of their bank approved mortgage limit.
Just because the bank approved you for a million dollar mortgage doesn't mean you should take them up on it, y'all. Mortgage approval numbers are not the same as speed limits.
Buy a house you can comfortably afford, that you can reasonably grow into, in a neighbourhood that works for you. Buying unnecessarily expensive homes is silly.
When we bought our home, we were lucky to be able to buy way below what we were approved for, at a cost comfortably affordable even if we went from a dual to single income household.
Our home has plenty of space to grow into, in a neighbourhood we love. It's not perfect, but it's great.
Could we have bought a better home in an even better neighbourhood for double or triple the cost? Yes, technically we could afford it and were approved for it. But that would not be a sound financial choice.
@chris honestly the business of housing expenses being a large chunk of your pay is wild to me. We should all be working to undo that for everyone, not propagate it.
I know people for whom, housing stuff is 60-70% of their annual expenses because they bought or rent so outrageously. It's wild.
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