Doing the Mortgage Two Step

The mortgage process is really a two step dance. The first step is, of course, to figure out how much you can borrow from a lender. You need to ascertain your credit score and other factors to come up with a general idea of the price range you can house hunt in. The second step is more important. It is figuring out not the maximum you can borrow, but the maximum monthly payment you can comfortably make on a property. Many people mistakenly fail to consider this second critical step. Yes, homeownership is a good thing, but not if you are just barely getting by and stressing out. If you don’t believe me, consider all the foreclosures happening now. Do you think those people believe borrowing the maximum was such a good idea?