“A lot of buyers right now are going to feel the pressure to win that bidding war, and to be the victorious party…and they may come back and ask for more money.
“If brokers and lenders see them as a good risk, they may increase the amount that they can loan them, but I do think there’s a duty there to educate the borrowers and say ‘you’re approved for this amount, but let’s talk about what that means for your monthly payments’,” she added.
NerdWallet’s annual homebuyer report often throws up uncomfortable home truths for homebuyers; a form of buyer’s remorse – or the equivalent of a long-lasting hangover.
She said: “We’ve asked in the past what they regretted about buying their latest home, and what we’ve found is that a lot of people underestimate the cost of home ownership.
“They look at the mortgage payment, but they’re not giving enough weight to maintenance costs, HOA (homeownership association) dues, homeowner’s insurance and the sort of ongoing costs that they never had to think about as a renter.”