good afternoon...fha all the way.......please call me if you would like some details.i am in michigan, but licensed in california.....earnest money deposit and first year's hazard insurance many times is enough $ to close the deal...best regards...bob mcclure- mortgage now- farmington, michigan (248) 806-0366.....

The first thing that comes to mind is just because you are "approved" for that doesn't mean you have to buy for that price range. sounds like you are wise to question this, and don't forget to factor in living expenses, maintenance for your new home, utilities, etc. Many "approvals" are done with a computer program from the info you give the lender. Then an Underwriter actually goes through everything, and that 280,000 may or may not change. One word of caution....don't let a lender or Real Estate Agent talk you into more than you think you can reasonably afford. And think about this....if you were to get sick, or lost you job, would you be able to afford the Mortgage for at least 3 months?

Lisa,it's really simple. Tell the lender what you feel comfortable with, payment wise. They should then be able to tell you what you can afford. Just make sure that they factor in taxes, insurance, PMI (if applicable), association dues (if applicable). If you have any other questions, please feel free to contact me directly.
Shane Jones of
"The Shane Jones Team"