So in case you've been living in a cave or as Castaway on a far-away island, you're very aware that the US Housing Market crashed big time in the past few years. There have been many, many arguments over "why" this foreclosure crisis is the way that it is.

Some have blamed Lenders, others Real Estate Agents, many the government, and of course many feel is was just our good old fashioned American "greed" that caused the markets to puff up like the Goodyear Blimp. 

Did banks prey on unwitting consumers, or did households “overreach” and borrow more than they could afford? Economists at the University of Arkansas recently completed a study to answer that very question.

So what did they find? While they do NOT excuse the behavior of banks and other predatory industry idiots, they found that the #1 cause of the foreclosure crisis was that CONSUMERS JUST PLAIN OVER-REACHED in their borrowing. Here is a link to the full report: University of Arkansas Foreclosure Study

I'm not surprised. I happen to know a little bit about consumers since I AM ONE!

What you can AFFORD vs. what you QUALIFY FOR

That is the real question of the day, and the two are very different. Understanding the difference, will make the difference in being a happy, contented homeowner pursuing the American dream, and one who is facing the pains - financial and social, of foreclosure.

Here is a fantastic video clip by one of my favorite Mortgage Professionals in the world, (Blake Bench of First Colony Mortgage), on how to avoid that very same over-reaching. Check it out!

Click on this link:  How Much Can I Qualify For?

Lesson? Know what you can really afford, not just what some online mortgage calculator says you qualify for, then stay within that affordable range on your next home purchase!

Feel free to contact me directly with questions -, or shoot Blake Bench an email: