Don’t bite off more than you can chew…
This past weekend I showed several homes to some new clients. They were looking for homes in Chittenden County with acreage. We saw several homes that they liked, but there was one that they loved. A beautiful home with a ton of land. Here’s the rub…it cost more than they felt comfortable paying.
They were approved by the Vermont Housing Finance Agency (VHFA) for a first-time home loan. These low interest rate loans are available to Vermonters who meet certain requirements but only for homes that have a maximum purchase price of $275,000.
The home that these clients wanted cost more than $275,000. They tried the VHFA and were turned down due to the sale price. They approached other banks and found out that they were qualified to borrow the full amount. Although they had access to more funds, the interest rates on the non-vhfa loan was higher and it appeared that the monthly payment might be a little out of hand.
The last thing that my clients want to do is to over extend themselves financially.
These clients and I agree that it isn’t the best idea to pursue this particular property anymore. Soon enough we will find another amazing home that they love and a mortgage payment that they can live with…
-Dan Cypress
