anyone over pre-approved?

newyrbride06

we are short on cash, but high income. daycare costs (which will be diminishing rapidly) have prevented us from saving much. Anyone find another bank that approved them for higher?

we're short 50k for our dream home!!!! 

SmrBrd2012

Usually people try to go as low as possible from their preapproval rate - not higher. Lenders generally tend to give more than you can actually afford, increasing risk. I wouldn't recommend going higher...

moonprincessd

Dude, it sounds like you can't afford the "dream home" so I'd look for another home or save up. We were pre-approved for $200,000, there was no way we could afford that! Just because you're pre-approved for a high number does not mean you can afford it.

Sisugal

Keep your housing costs to no more than 25-28% of your TAKEHOME pay (mortgage+insurance+taxes+PMI+utilities+HOA)  30-35% if in a HCOL area.  LESS If you have a good deal of debt!
Lenders will give you way more than is financially comfortable.  Don't become house poor!
If you cannot come up with a good down payment, closing costs, moving costs and start up costs (not to even metion repairs/renovations and decorating & additional furniture & appliances --- AND still have an emergency fund in place----then you are not ready for home ownership.
You do not NEED a dream house - you need a house that meets your needs that you can comfortably afford.
Downscale your excectations or wait until you can afford your dreams comfortably.
Home ownership is soooooo much more than the monthly mortgage payment.

Also you need to look at your TOTAL debt load - WITH a mortgage - what % of income will you have when you add credit card, student loans, car payments & any other obligations??  It cannot exceed their limits for best loan rates.

It is not about your income level -- it is about available $$ to spend on your home!  We are just now coming out of a housing crash that was caused in large part by borrowers such as you.  Take note and do not repeat their mistakes!

G2SoccerTaz

We were pre approved for a whole lot more than we felt safe with. When we sat down looking over our budget and put in the monthly payment the back said we were approved for, we ended up with a negative each month. So we found a happy medium on a monthly payment and looked for a house in that range. We do not want to be house poor. Considering within the first few months we had to buy a new fridge and washing machine. Appliances do not take too kindly when being moved. You never know what will happen when have your own house. Never know when appliances go out or AC/Heater stop working. You need to have money to fix those problems that come up. If all your money is going to a house payment then you will not have money for problems or even as gas and food prices go up.

I would look for a cheaper house and make it into your dream house. We bought a foreclosed that need work and I was able to make it what I wanted. And we still have money in the bank.

just look at your budget and see what YOU can afford not what the bank says they will lend you.

Sisugal

A preapproval does not guaranatee that you will be able to actually get that amount when you actually apply for the mortgage.

JoanE2012

newyrbride06 said:

we are short on cash, but high income. daycare costs (which will be diminishing rapidly) have prevented us from saving much. Anyone find another bank that approved them for higher?

we're short 50k for our dream home!!!! 

Buy what you can afford now.  My DH and I were approved for more than double what we ended up buying.  We wanted to be able to afford the house on one income in case something happened.   We also didn't want to be house poor.....we wanted to continue traveling, buy new furniture or decor, work on home projects, etc.

If daycare costs will be diminishing rapidly, then start saving and buy your dream home when you have enough.  Good luck!