That puts more of the onus on buyers to set a reasonable budget for their means.Īs a general rule, financial experts recommend spending no more than 30% of your monthly income on housing costs.
As of 2017, that figure had risen to 32% for prospective borrowers with imperfect credit.įinancial reform legislation such as Dodd-Frank tightened the lending spigot that led ultimately led to the subprime mortgage cascade, but as we get further removed from the crisis, lenders have started to relax their standards once again. In the years leading up to the housing crash, just 14% of mortgage applicants were denied.
Don’t take on more house (or debt) than you can comfortably afford. Source: (Allie Lehman/ Death to the Stock Photo) 1. It’s easy to be bold and take risks when times are good!īut the moment you feel tempted to throw caution to the wind, splurge on home decor rather than necessary maintenance, or even buy a little more house than you should-remember these six valuable lessons in homeownership and personal finance that the 2008 housing market crash forced us to learn the hard way. history, when homeowners across the country saw their properties make massive value gains starting in 2012. More recently we recall the third-largest housing boom in U.S.
We’ve all been warned: “Those who cannot remember the past are condemned to repeat it.”īut as the 2008 housing market crash fades into the rearview, it’s easy to forget that at one point, not all that long ago:
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