Quote:
Originally Posted by Xist
So yes, if I seriously want a house, I should apply for a mortgage...
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If you get serious about buying a house you should get preapproved for a mortgage. No realtor is going to take you seriously until you can show you have the capability of buying a house.
However, don't fall into the trap of asking the mortgage broker how much you can afford. They will approve you for mortgages way to high that can be difficult to repay. They don't care if you pay because they don't hold the mortgage they package it and sell it.
I remember when I purchased my first house I was making $45,000 a year. The bank wanted to preapprove me for $250,000! That would have been almost 45% of my gross pay going to the mortgage (+ PMI, Insurance, Property tax, etc)
Figure out what you can afford to pay and then get approved for that amount. (The old rule used to be 28% of gross pay)