Last night the fiance and I had a meeting to get pre approved for a mortgage. We are starting to look at houses and have decided we can afford something under 160k. In our area this should buy us a 3 bed, 1 and half bath, 1 car garage and a basement that is hopefully finished or easily finishable. That is what we are looking for and we have found quite a few that would work but just not the perfect one for us yet.
We knew getting approved for this much for a mortgage would not be a problem. However, the amount they approved us for is ridiculous. The mortgage company told us we could be approved for 350k. That would buy us a mansion in our area. Well, maybe not a mansion but a really really nice house. Anyways, we know we can't afford that with our current situation. Maybe if we didn't want to save for retirement or anything else and if we never wanted to spend money for entertainment, vacation, clothes or anything. Don't worry, we are keeping a level head about ourselves. Just because they say they will loan us 350k doesn't mean we are going to start looking at 350k houses. We are still sticking to our original price range under 160k.
Another interesting thing we got to see last night while meeting with the lender was our credit scores and reports. It was interesting to see that I have a credit score around 720 and my fiances was in the 760's. So she has better credit then me. Yes I'm jealous. But I can live with it. So we currently have good credit. Now we just need to continue paying everything on time and not mess it up.
The funny thing was after the meeting my fiance was asking me how she can increase her credit score. Apparently it wasn't good enough for her. Gotta love her!