In this episode we discuss that on almost every real estate related website there are mortgage calculators that help you understand what you can afford. The real question is what numbers are you using and how confident with the numbers are you? When shopping from a home a budget going up or down by as little as $10,000 can make a major difference. Up it could mean you can afford that paved driveway instead of gravel and down it could mean that fenced in backyard might not be in the budget. In order for sellers to take your offer seriously they must see some sort of proof you can afford their home. A pre-approval is the assurance they need that you are financially capable of purchasing their home.