How Much Can I Spend? • Carolina Home Mortgage

Interested in a family home, vacation home, investment property, or condo? Let us help you. You can try our mortgage calculators, talk to a real estate agent, or read on to learn about how much money you need. Don’t hesitate to call us far ahead of your purchase, too. We help you set your financing goals. And since we are an independent mortgage broker, we represent many lenders and have lots of products.

Get Pre-Qualified

If you are looking at a purchase, the easiest way to learn how much you can spend it to get pre-qualified in three easy steps,

1. Fill out a loan application.
2. Have your credit report reviewed.
3. Talk to a loan officer.

Know Your Income

Find the documents you’ll need. It seems like a lot, but all lenders require the following documents from you (and your co-borrower if there is one).

Copy of most recent W-2.
Copy of pay stubs from the last 30 days.
Copy of all pages of bank account statements from the last two months. Be sure to save all pages, even the page that reads, “This Page Left Intentionally Blank.” Do not black out or white out any information.
Copy of all pages of the last retirement account statement. Again, save all pages and do not mark the pages.
Copy of drivers’ license.
Copy of your two year’s tax returns if self-employed

You will need enough money to pay due diligence and earnest money to a realtor. See First-Time Homebuyer. You will need the money to cover a down payment and closing costs.

Check Your Credit Report

Federal law allows you to get one free credit score every 12 months. The biggest credit reporting agencies are Equifax, Experian, and TransUnion. You can get one free report from each agency. You will need your social security number, your name and birthday, and your address. Go to www.annualcreditreport.com to order. Resolve any errors that you see. This is just the beginning. For more information, see Credit Score.

Establish a Budget

Please budget monthly living expenses, including food and fuel, and payments in order to see how much more you have left after rent. Owning a home can bring unexpected expenses, like a roof or heater that needs replacing, so make sure you can cover those expenses as well as your mortgage payment. The 1% rule of thumb is a good place to start. This involves setting aside 1% of the home’s purchase price annually for repair and replacement costs. It really is important to determine not only how much you can spend, but how much you want to spend.

What If I Already Own Another Home?

If you are thinking of selling your house or have an existing home for sale, we make sure you can pay both your current mortgage and your new mortgage. If so, you can offer to buy the new home with a non-contingent offer. A non-contingent offer means you do not have to wait to make the purchase until you sell your current home. Conversely, you can make an offer contingent upon your selling your existing home, but that is riskier for the seller.

What If I Filed for Bankruptcy?

If you have a bankruptcy on your financial record as little as two years ago, we may still be able to help you get a mortgage to buy a home.

What If I Am Separating?

If you are getting divorced or separated, please call us to discuss your options. We share the guidelines concerning when and how alimony and child support can be used as income. The guidelines vary greatly depending on the type of residential mortgage.