One of our clients’s recently referred a first time home buyer to us.  After the initial consultation, our new client indicated that being in proximity to Downtown Glendale was important and upon learning that they have a toddler we zeroed in on great and affordable school districts and decided on the community of La Crescenta. 

What price range?  Although I was in the mortgage banking field for well over ten years, I don’t prequalify my clients; there are several reasons:

*It is not my business how much they make or the number of their FICO

*They need to talk with the bank, it doesn’t matter what I believe they qualify for - it is the bank’s money and therefore their decision.

There is nothing worse than to fall in love with a home only to learn that you can’t afford it.  Ever hear the adage that money arguments are the leading cause of divorce?  It’s not fun to fight, let’s agree on the monthly and then look at homes within that price range. For whatever reason my clients often prefer to spend less then what the bank “thinks” they qualify for; they have their own idea of what they can afford on a monthly basis.  Once the prequalification is out of the way, we can discuss available homes in their price range.

This client originally hoped to stay in the $525,000 price range, and preferred a 3 & 2.  After eliminating the homes that are the short sales, we were left with zilch.  Back to the drawing board…. Perhaps a 2 bedroom, perhaps a 3 & 1??? No, still not excited, because after all when you consider the amount of your monthly payment, you better love where you are living!   The client finally decided on a 3 & 2 with a smaller yard, good condition and in the $550k range. 

Buying a home often involves compromise and this client compromised on lot size in order to remain close to their target price, room count, etc.