Here’s how to get a home as interest rates rise

“Do you know how much $65 a month can get you in real estate?” she asked rhetorically. “An extra $10,000 in your max purchase price on average.”

It’s often said, she suggests, but it’s worth repeating: Debt will keep you from buying the home you want. “When you’re getting preapproved to buy a home, credit card payments factor into how much you’ll be approved to buy,” she reminds.

“So, if you’re not hearing the number you want when getting preapproved, it may be time to look at what extra payment you can cut from your budget,” she advises would-be homeowners.

It’s either a need or a want

It’s the difference between what’s needs-based and wants-based, Richardson said. The age-old tradition of keeping up with the Joneses is not conducive to such calculations, she explains to clients.

Take the cost of a car payment, for instance, which was $700 a month last year: “If you are qualifying to buy a house, that equates to about $100,000 in sales price. Now I’m not talking about if it’s needs-based like you need to have this car or this truck for work. But if it’s wants-based – if you can’t qualify for what you want to buy as far as buying a new home, you need to ask yourself, do you want a new car or do you want a new home?”