I got my pre-approval for my mortgage. I was approved for 150% of what I want to spend. That’s crazy! No wonder people get into such a mess with their mortgages. I don’t even know how I could afford that much. I used a mortgage calculator, and with a 20% downpayment, I would still have very little money left every month after paying the rent.
Of course, I guess once I buy a place, I will have to change my tax withholdings again. They’re already high, and I’m expecting to get a bunch back this year (I should really change that) and I’ll have a tax break with the mortgage payments too.
But I digress. 150% of my max! Insane! What are these companies thinking? That said, I’m smart. I’m sticking to my max. Actually, I’m willing to go up an additional $15K, but I’m keeping that to myself and not mentioning it to my agent – I know she’ll push the limits, and I’d like to have that in my pocket if the perfect place shows up. But if I tell her I’ve got that window, then suddenly she’ll push beyond that. I’ve heard good things about this particular agent, and I’m hoping that she doesn’t go crazy, what with me getting approved of so much money that I’m completely not prepared to spend.
Megan is a 40-something government employee in the Washington, DC area. She got interested in Personal Finance when she got out of college and realized that her paycheck wasn’t going to go as far as she had hoped. Since starting this blog, she has managed to buy a house and make a solid start on her retirement goals, and hopes to help others do the same. Here is her story:
In 2007, I was a gainfully employed 20-something with no debt but not a lot of knowledge about personal finance. It was a co-worker’s comment about Roth IRAs that sent me to the internet, searching for information. It was then that I realized that I really didn’t know a whole lot about personal finance and that my current financial situation was due a lot to inherent frugal tendencies, generous family members, a fear of debt, and good luck. While that was working for me, clearly I needed a better plan.
While I had no debt, I was also pretty much living paycheck to paycheck and not worrying about going over budget (I say this as if I had a real budget) because I had an emergency fund set aside to cover any overages.
Except that’s not what an emergency fund is for.
So I did a lot of research, read a lot of blogs, and decided that I needed a plan. I needed to budget. I needed to know what I was spending my money on. I needed to prepare for the future.
I decided to create a blog not only to make myself accountable to others but also to share the knowledge that I gained along the way. I’ve learned so much from my fellow bloggers, and I hope that my readers can find something useful in what I have to share as well.