How much mortgage can I afford?

June 10th, 2023

Savings budget expenses

How much mortgage can I afford? People are always searching for information on how much mortgage they can afford. Some people want to buy a new home. Others a second home/vacation home or a rental property.

Getting pre-approved through a mortgage lender is best

The best way to know how much mortgage you can afford is to get pre-approved through a mortgage lender. There’s really no shortcut for you to figure it out on your own.

Why do sellers and realtors want me to be pre-approved?

Mortgage guidelines and debt ratios change frequently. Other variables, like an accurate credit score and trying to determine the latest interest rates, also make it difficult.

Don’t wait until the last minute to get pre-approved

You can get a rate quote and look at estimated monthly payments

You can get a current interest rate quote from me. A credit pull is not required, and no fee is paid. No commitment of any kind is needed. It is simply best for you to know current interest rates as it applies to your situation. Interest rates vary based on loan size, credit score, property type, and other variables. So, it is best to speak to a mortgage lender to get a current rate quote. And keep in mind that interest rates can change daily. So, what rate you’re quoted on one day will likely be different a week later, a month later, or certainly a year later.

Once you get a rate quote from me you can use my online mortgage calculator and input different mortgage amount scenarios to determine monthly payments at various price points.

There’s no sense looking at property until you know how much mortgage you can afford.

I wish there was a shortcut I could give people that can tell them how much mortgage they can afford. I’ve read online that people can count on qualifying for three times their income for a mortgage. But I’ve qualified people up to five and six times their annual income for a mortgage. It depends on interest-rate levels, your debt load, your down payment, and lots of other variables. It’s a waste of your time to look at real estate until you know how much mortgage you can afford.

Getting pre-approved is free.

It only costs you some time and paperwork. And since it’s free and accurate, it’s the best way to proceed when you think you want to buy a house. Don’t rely on online mortgage calculators, or a quick back of the envelope calculations. Sometimes it’s best to do the long math.

After a mortgage lender tell you how much mortgage you can qualify for, then you can decide how much mortgage you want to take. Your own personal budget may not match what a lender tells you that you can afford.

Just like most things in life, it’s best to consult a professional if you want the most accurate answer. And make sure that professional is well reviewed and highly regarded.

Contact me to discuss your pre-approval, credit history, mortgage rates, or other mortgage questions. Click here to schedule a call. Or you can email me directly.

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Brian Martucci is a loan officer for Capital Bank Home Loans, a division of Capital Bank, N.A. He has been in the mortgage industry since 1986 and has served in a number of roles, including loan processor, loan officer, mortgage broker, branch manager, and vice president. Brian Martucci – NMLS# 185421. His opinions do not necessarily reflect the opinions and beliefs of Capital Bank Home Loans or Capital Bank. Capital Bank, N.A.- NMLS# 401599. Click here for the Capital Bank, N.A. “Privacy Policy”.

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