My daughter Frankie, 5, finally beat her fear of the water and learned to surf earlier this month. Watching her stand up on the board for the first time last week is a core memory I'll never forget.

 

She even participated in a mini heat at surf camp and was convinced she would win the $1,500 prize. 

 

I asked her what she would do with the money if she won. 

Here's what she said 👇

 

 

My girl has her mother's taste, so naturally she picked out a two-story treehouse with a slide that costs a cool $5,876.

 

So, I put on my lender hat and ran her numbers.

 

$1,500 down is 25%. Strong. Most buyers I talk to would love to walk in with a quarter down. If this were only about the down payment, Frankie would be ready to go.

 

But the down payment was never the whole question. Her income is an allowance of about twenty dollars a month. When I calculate the remaining $4,376 against her monthly 'income', the math doesn't math.

 

The exact same conversation happens constantly with real buyers, and the down payment is almost never where the problem lies. Somebody has the funds to get in the door, but their monthly budget can't support the house once they're standing in it. 

 

The number everyone checks is whether they can get approved. The number that decides how the next five years feel is whether they can carry it. Those are two different numbers, and only one shows up on a pre-approval letter.

 

I told Frankie what I tell my buyers in similar situations: getting into the wrong house is worse than not getting into a house at all.

 

When you refer a client to me, that's the conversation they're getting. Not just whether the bank will say 'yes,' but whether it's the right answer for their goals. Your name is on that intro and I treat it like it's on mine. 
 

John

 

P.S. - Frankie is undeterred and is trying to negotiate a raise with senior leadership. Turns out she might have a future in this business 😜.