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Question about that 'don't buy the most expensive house you're approved for' advice
My uncle told me to never buy at the top of my pre-approval number. He said it's a trap. I got approved for $350k back in March. Found a cute place for $340k in Austin. Thought I was being smart. But now my monthly payment is still way higher than I expected. Taxes and insurance went up fast. PMI is eating me alive too. Was he right and I just didn't listen enough? Or is buying under your max actually just standard advice that doesn't always work? Anyone else regret not stretching a little more for a better neighborhood?
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the_sean1mo agoTop Commenter
That $340k place in Austin probably came with a 5% or 10% down payment, which is why PMI is killing you. You needed at least 20% down to avoid it, or a conventional loan with decent credit to get that waived. But honestly, your uncle was right about the main thing - lenders approve you for the absolute max payment they think you can technically make, not what leaves you room for life. The taxes and insurance surprise is real too, especially in Texas where property tax rates are around 2-3%. Next time try to get a quote from the county tax assessor's office for the actual rate on the specific house before you commit, not just the zillow estimate.
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sean1191mo ago
PMI plus Texas property taxes is just a double gut punch every month.
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