Assistant Teaching Professor of Economics Devon Hawkins spoke with USA Today for an article title "How much house can I afford? Mortgage affordability explained."
Devon Hawkins, assistant teaching professor of economics, recently spoke to USA Today for an advice article about mortgage affordability.
Hawkins cautions against relying solely on the mortgage amount approved based on income and debts. She notes that you should also factor in your budget and lifestyle.
“Once buyers receive lender approval, it can create a false sense of security around affordability,” Hawkins said. “Lenders rely on statistical formulas based on numbers, assumptions and averages, but they do not know your lifestyle, your future plans, your financial discipline, your non-negotiables or your risk tolerance.”