It is very important to ask lots of questions when prequalifying a potential buyer. First time home buyers look to their lender for advice when looking for a loan. I believe the most important question to ask a borrower is how much of a monthly payment are they most interested in paying versus telling them this is how much you qualify for. You may qualify for a $4000 monthly mortgage payment, but are only interested in paying $2500 per month.
As a homebuyer, you should know your own budget and limitations better than anyone else. So, ask yourself how much you are comfortable paying per month, taking into consideration all of your other obligations. Do you like to go out to dinner a lot, take lots of vacations or do you want to send your kids to private school? These are just a few of the questions a lender would not know or take into consideration as part of the overall equation.
Don’t give up everything just to have a mortgage, you will be resentful of your home. There are surely certain taxable benefits of purchasing a home which create savings for you as well as the ability for appreciation. So, make sure you are setting the limitations versus putting yourself into an uncomfortable situation because someone told you that you qualify for a much higher amount. Seek the advice of an experienced lender who comes referred by your realtor or someone you know who has had a good experience with this lender.