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Rainer
279,648
Dipti Thakkar
LAER Realty Partners - Andover, MA
On a team with Praful Thakkar

It is the personal choice.

Jul 15, 2018 10:34 PM
Ambassador
5,207,346
Bob Crane
Woodland Management Service / Woodland Real Estate, EXP - Stevens Point, WI
Forestland Experts! 715-204-9671

That is their choice, my first home loan was at 18 percent, it got me started.

Dec 02, 2019 10:37 PM
Ambassador
4,312,167
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Financing is something personal. I do not interfere.

Mar 08, 2018 11:10 PM
Rainmaker
629,951
Ajay Pandya
e-Merge Real Estate - Columbus, OH
Realtor Ajay Pandya

If they want to go ahead with the home they like with this type of loan, why not?

Feb 27, 2018 08:22 PM
Rainmaker
532,994
Robert May
Robert W May - Lethbridge Real Estate - Lethbridge, AB
Real estate consulting

just looking back on some of the old questions and answers, looks like you got some good replies here.

Mar 11, 2016 02:34 AM
Ambassador
2,224,067
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

It's not my decision to make, but I can let them know about the risks. 

Mar 07, 2015 11:26 AM
Rainmaker
331,348
Bruce Swedal
Denver, CO
Denver Real Estate

I inform and let adults make their own decisions.

Mar 07, 2015 09:07 AM
Ambassador
3,986,518
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

I do not encourage someone to do anything that I don't think is smart. I would point out the drawbacks and talk about the possibility of waiting. If they insist on moving forward knowing the consequences then I will do as they wish and say no more.

Mar 07, 2015 07:15 AM
Rainer
241,637
Richard Robibero, e-Pro, ABR, SRS
Panorama R.E. Limited - Toronto, ON
Selling Your Home as if it were My Own!

"Really can't afford it". Those are the key words. I would handle the situation with kid gloves because you don't want her calling some other agent because you refuse to look at propoerties with her.

 

Mar 06, 2015 08:16 PM
Rainmaker
663,086
Sham Reddy CRS
H E R Realty, Dayton, OH - Dayton, OH
CRS

Its what you think, its what they want to do is important.  You are real estate agent not a financial advisor.  I will ask them to consult their accountant or attorney for a more credible opinion

Mar 06, 2015 07:36 PM
Rainmaker
858,538
Troy Erickson AZ Realtor (602) 295-6807
Good Company Real Estate - Chandler, AZ
Your Chandler, Ahwatukee, and East Valley Realtor

Charles - I look at it this way, who am I to determine what my client can or cannot afford. As their agent, I do not know everything about their lifestyle, their debt, or how much they make. I may have an idea about some of these things, but I certainly do not know everything about them, their spending habits, or how disciplined they may or may not be. If they qualify financially, then it would be completely their decision whether they felt they could actually afford it or not.

So what I would do is explain exactly what their interest rate is that they qualify for, and try to present to them as close as possible how much their payment would be. I would also include all closing costs, and any additional expenses they may have related to the home purchase; repairs, landscaping, appliances, utility costs, etc. They I would tell them that the decision is completely up to them whether they feel they could afford the loan or not.

If they tell me that they can't afford it, then I would absolutely agree and support their decision 100%.

I do find it interesting that most people said they would advise the buyers to wait because things may be better later. Things could also get worse if homes are appreciating and interest rates are rising. They may be priced right out of the market.

One other thing is that after a couple of years, they could also refinance and possibly get a much lower interest rate, depending on the market of course.

Mar 06, 2015 02:08 PM
Rainmaker
417,832
Bill Dandridge
MKB, Realtors - Roanoke, VA
GREEN, ABR, GRI, EcoBroker

I always tell my clients that they need to find a payment that would be comfortable with them. If your clients could not afford it, it is your obligation to get them to tap the brakes a bit so that they could save more money for a down payment that will reduce their monthly obligation, or to reduce the amount of the load by purchasing a less expensive home. You will be doing your clients a tremendous service by counseling them in this manner.

Mar 06, 2015 09:12 AM
Rainmaker
634,272
Kathleen Luiten
Resort and Second-Home Specialist - Princeville, HI
Kauai Luxury Ocean Home Sales

If they say they really can't afford it then I would encourage them to wait. 

Mar 06, 2015 08:50 AM
Rainmaker
926,982
Ron Marshall
Marshall Enterprises - Saint Michael, MN
Birdhouse Builder Extraordinaire

I would tell them to wait, too. And, be sure that they are improving their credit scores every month.

Mar 06, 2015 08:09 AM
Rainmaker
378,689
Cindy Davis
SD Home Source Realty - San Diego, CA

I would enourage the buyers to wait, and develop a strategy for improving their credit/financial profile.

Mar 06, 2015 06:37 AM
Rainmaker
4,799,306
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

I would advise them to wait.  Especially if they can't afford it.

Mar 06, 2015 05:55 AM
Rainmaker
3,899,802
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

I would counsel that buyer to think long and hard about the financial impact of a high interest loan. After that, it's their decision and I'm there to help them get to where they wish to go.

Mar 06, 2015 04:21 AM
Rainmaker
3,985,765
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

I tell hem to thinkhard about it.WAiting 6 months could change everything and make it much more affordable.

Mar 06, 2015 03:27 AM
Rainer
140,911
Daniel Seider
BTRE Big Trees Real Estate - Arnold, CA

I tell them to wait. I always put my clients best interest ahead of making a sale. I want life time clients. Basically I think of their interestr ahead of mine and my business

Mar 06, 2015 03:23 AM