3 reasons you should not buy a home

With the average price house in Sonoma County being $640,000 many probably would want to purchase a house however wanting to purchase a house and being able to do it are two different things. Following things should be considered if you want to buy a house successfully…

The most important thing is can you afford the mortgage payment? Is your income rising, remaining stable, or is it going to decrease over the course of the next few years? If your income is going to rise or remain stable that’s a healthy platform.

What are other monthly payments do you carry such as car loans, student loans, credit card payments? How will you manage paying those back while carrying a mortgage payment? What percentage of your monthly income will be going to be going towards other monthly obligations? If more of your income is going towards debt than savings that’s an issue. Which means putting off the house purchase paying off other debt or buying a less expensive house or putting more money down.

Remember for every dollar of monthly debt it requires $2 of income needed to offset it so for example a $500 car payment requires $1,000 a month in income to offset it. If you’re looking at taking on a mortgage payment for example and your total monthly payment is $1,800 per month and you don’t have any other debt at all you’ll need $3,600 a month of income to offset $1,800 per month mortgage payment.

How is your credit score? This one can be a double-edged sword for many because some people who think they have good credit don’t have good credit and people who think they have poor credit sometimes end up having good credit. To get a mortgage with acceptable terms you’re going to need at least a 580-credit score in some cases lower depending on which mortgage company you hire for home financing.

The number one reason why people don’t get mortgage loans today number one thing above and beyond anything else is debt to income e.g. taking on too much mortgage payment in relationship to their monthly income. As a byproduct of that the next thing that the biggest challenge for buying houses is income income to offset the proposed debt and current monthly debt followed by the cash to close.

If you’re looking to buy a house and are looking to do it in a safe and prudent way. Seek the advice of an experienced mortgage lender willing to work with you to make your financial situation work. If your home buying plan is on the longer-term horizon say 10 years or longer. and you can afford that mortgage payment above and beyond anything else it may make sense to purchase a house on a fixed rate mortgage since affordability is number one which would allow you to weather the inevitable financial cycles that occur.

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When buying a home, it’s natural to want the lowest mortgage rate possible. But sometimes, chasing a slightly better rate from another lender—especially after your offer has already been accepted—can backfire in a big way. Let’s walk through a real-world scenario. You’ve got an offer accepted on a house. You’re working with a lender who has you approved, documents in underwriting, and a 21-day close of escrow in place. Everything is moving forward. Then you hear from another lender offering a rate that’s 0.25% lower, with slightly better closing costs. It’s tempting. But before you make a jump, here’s what you need to consider. Switching Lenders Comes with Time Costs When you pivot to a new lender mid-contract, they’ll need to: Re-underwrite your entire loan, Order a new appraisal, Disclose and sign new loan documents, Submit the file for final loan approval, Schedule and fund closing—all over again. This doesn’t happen overnight. Even in ideal circumstances, the new lender is likely going to need at least 25–30 days to close. If you’re in a fast-moving or competitive market, this is a real problem. Most sellers won’t grant a contract extension just because you’re switching lenders. So, what happens next? A Contract Extension Can Jeopardize Your Deal Asking for a contract extension means the seller must agree to delay closing. But that delay introduces risk—especially if the seller has backup offers or simply wants certainty. They may not grant the extension. Or worse, they could cancel the deal outright and take another buyer’s offer. Even if the seller agrees to extend, your earnest money and negotiation power could take a hit. And for what? A slightly lower rate that might save you $50 to $75 a month? Mortgage Rates Aren’t as Far Apart as You Think Here’s the truth: all mortgage lenders get their money from the same place—the bond market. The pricing differences between lenders usually range from 0.125% to 0.25% in rate on any given day. If one lender seems to be offering dramatically better pricing, the first thing you should ask is: How? Head over to FreddieMac.com and check the average 30-year fixed rate posted weekly. This is one of the most reliable benchmarks for where rates truly stand in the market. If a lender is quoting you a rate that’s well below that average, ask for the details: Are they charging extra points? Is this a teaser rate with a prepayment penalty? Is it based on a different loan product or risky structure? Often, what sounds “too good to be true”… is. Consider the Bigger Picture Think long-term. If you’re financing $600,000, a 0.25% lower rate may reduce your payment by roughly $75/month. But what if you lose the house and have to start over? That monthly savings doesn’t mean much if you’re outbid on your dream home or lose your deposit. Also, remember: you’re not going to keep this rate forever. Today’s homebuyers typically refinance when rates drop by about 0.75% or more. So if rates fall within the next year or two, you’ll likely be refinancing anyway. Instead of paying extra points now or risking the entire deal for a minor monthly savings, it may be better to accept a slightly higher rate—knowing you’ll refinance when the time is right. The Real Risk Isn’t the Rate—It’s the Delay When shopping for a home loan, don’t just ask, “What’s your rate?” Ask: Can you close on time? Is this rate sustainable or based on hidden costs? Will switching lenders delay or jeopardize my contract? A home purchase contract is a binding agreement between you and the seller to perform within a set timeframe. If you can’t meet those dates because you're chasing a slightly better rate elsewhere, you may want to reconsider if now is the right time to buy. Final Thoughts Yes, interest rates matter. But execution matters more. Before making a switch mid-transaction, talk to your lender. Have an honest conversation about pricing, timelines, and strategy. You might find that staying the course, securing the house, and planning to refinance later offers a better path to financial security. Want to Know Your Options? Let’s compare rates and strategies the smart way—without risking your dream home. 👉 Click here to get a custom rate quote today.

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