When I got approved for a mortgage several years ago, the bank told me I would be approved for almost $100,000 more than I was comfortable buying. On paper, our income looked good and our credit score was great. Fortunately, we looked at what the house payment would be at that price. It was way more than we wanted to spend each month on a house payment. So, we found a house that was more in line with what WE were comfortable paying.
Some lenders suggest you can afford a mortgage payment worth 1/3 of your gross income. Others suggest to plan spending 28% for your monthly housing payment, including taxes and insurance. There are lots of factors to consider, so make sure you talk with your lender and see everything that’s in play.
If you have any questions, that’s what we are here for. Give us a call 251-929-2150, or search our website anytime to see everything that is available in this area. We are here to help you, so let us!