I was pre-approved recently for about 35% more than I could reasonably afford and still have any sort of lifestyle. (And I’m pretty frugal) I knew that my budget wouldn’t allow me to get anywhere near what they offered but was very tempted to believe what their little letter told me.

So while it is a great idea to get a pre-approval, please work out your own budget and know your limits. Don’t be dazzled by the numbers they show you. And don’t assume that any ‘estimated mortgage payment’ is the bottom line. I will be paying about 25% more than my (principal and interest) mortgage payment each month for insurance, hoa, pmi, tax escrow, and more words that I only vaguely understand. That may not be normal but be cautious.

Sorry for the rant. Thanks for the awesome blog! I’ve been following for a couple months since I found you at the start of my home buying research and I hope to continue following your stories even after I close next month!