Step 1 Before Getting Pre-Approved

As a residential lender & someone chasing financial freedom, I see a lot of people buying homes every day.

The conversations I have with clients or prospects often go unfortunately similar. I always start with their budget. I ask them to talk about their monthly family budget, goals outside of homeownership, etc. What I'm trying to find out, is how much do they want to spend monthly? Likely, none of us want a mortgage, but we will have one if we buy a home.

How much do you want to spend? There is no right answer. But, how much do you want to spend so that you can still enjoy your life (in whichever way makes you happy). Do you like to go on vacations? Are you trying to achieve financial freedom ASAP? Are you planning on starting a family soon, and know that your monthly expenses will skyrocket because of that?

Most people, unfortunately, tell me that is why they are talking to me. So that " I can tell them how much they can afford". If you are coming to me, someone you don't yet know or trust, and relying on me to tell you that, I don't feel good about that.

Now, it's certainly OK to not have it figured it out yet, but that should be part of the process. Most people look at their mortgage as a singular line-item. It's not. It's a MAJOR part of all of our lives', and should be treated that way.

Before you apply for a mortgage? Spend time budgeting. Learn what your monthly spending is. Identify your short & long term goals. This is CRUCIAL, to getting into a home that allows you to thrive financially. 

This would be my step #1. This, in my opinion, is the singular most important step in the process.