Qualifying = Affordable?

If you qualify for a loan, does that mean you can afford it?

Since I write mortgages, I put myself to the test. Based on our current debts & income, the industry says we can afford a payment of roughly 3x what our current payment is. 3 times! Even in this recession, that is what the mortgage industry says we can afford. If we took this payment obligation, we could probably squeeze it out each month, but would have no money to save, no money to give, and no margin in our lives. We would be one small emergency away from financial disaster.

If I have no wiggle room in my budget, I have to say, that would add unneeded stress to my life. The added stress would wear me down as a mother, wife, and friend. Maybe that's why we feel so much pressure in our lives. We want to have the latest and the greatest, which causes us to live at the edge of our ability to pay and then we wonder why we have no victory in our finances. We borrow for houses, cars, toys, vacations, and everything else, and then wonder why we live in bondage. It's because we are in bondage - we are slaves to our things, enslaved by our payments, slaves to the lenders.

Maybe this is how we get into the messes we get into. We are led to believe that we can afford things, by lenders agreeing to lend us the money. We buy things because a financial institution (that we trust) agrees to lend us the money, therefore telling us that we can afford them.

Don't we also buy to gain approval of our spouse, friends, children, and even strangers. Why do we spend money that we don't have on things we can't afford, to impress people, some of whom we don’t even know or like? Why do we think having things makes us better or more likeable? Isn’t that really why I want most of this stuff… so you will think I’m “doing good,” and then if I have your approval, I can be proud of myself?


Just because you will be lent the money, does NOT mean you can afford it. Let's use wisdom when making decisions. In light of my past experiences, my current situation, and my future hopes and dreams, is this a wise decision for me? (and you can thank Andy Stanley (I think) for that last line)