What Size Wilmington Nc Home Can You Afford?

The foremost step to purchasing a Wilmington, NC, home is deciding how much house you can afford, or with what payment you feel comfortable. This can be an aggravating operation. Calling lenders, looking at mortgage loan programs and interest rates can be confusing, to say the least. There is an uncomplicated way to get started, and give yourself an idea of where you stand.

The foremost move is to find out what mortgage interest rates are at the current time. You can typically do this with a couple of phone calls to lenders or some quick looking on the web. Get your rates on conventional fixed rate loans. If interest rates rise in the future, your loan will be unaffected, unlike Adjustable Rate Loans.

To obtain a very clear picture of how much house you can absolutely qualify for, the best idea is to contact a trustworthy local lender and let them analyze your entire situation. The lender can calculate your income-to-debt ratio, do a quick credit score and give you the information you need. Usually, lenders like to see a ratio not exceeding about 28%. This does not take into consideration long term monthly debt. As an example, to qualify for a loan, lenders may require ratios of 28% or 36%. This means you can spend up to 28% of your gross monthly income on a motgage payment, and no more than 36% of your gross monthly income on all forms of debt, mortgage included.

Once the loan officer determines the amount of home you can afford, they can allot a
pre-approval for you. A pre-approval is an official letter saying the lender commits to giving you a certain amount of money as determined by current rates. This makes the home search much easier, because you know the price range you should be searching in. Also, sellers often require a preapproval letter when an offer is presented to prove you have the money to buy the house.

We work with a number of Wilmington, NC, loan officers and would be happy to recommend one for you. Simply give us a call at (910)202-2546.


Realtor Melanie Cameron has been a professional, full-time Realtor since 1994 Certified Short Sale Specialistspecializing in the marketing and selling of residential homes in Wilmington and surrounding areas. Melanie has been a consistent Top Producer in the Coldwell Banker system and is ready to help you find your Wilmington NC real estate.