Yes, You May Qualify For More Home Than You Can Afford!

Real Estate Agent with BlueCoast Realty Corporation


Yes, you may “qualify” for more      

home than you can “afford!”  Broken Piggybank

Even in today’s more complicated

lending environment, it’s still

common for lenders to “qualify”

Buyer’s for more than they can “afford” because the lender is calculating debt to income ratios the same for everyone but individual lifestyle determines an affordable mortgage. 

Two Buyers with the same income and same debts might live  very differently;

Eating out is generally more costly than cooking at home.  


Renting movies is less expensive than going to movies.


Running is a free hobby whereas golf can be quite costly.


Sending a child to private school takes a huge bite from disposable income.


Annual vacations requiring passports cost more than “staycations.”


A passion for jewelry or the latest fashion will mean sacrifice elsewhere 


Higher deductibles on a health insurance plan and/or chronic illness requiring drugs can involve expense as  predictable as a car payment . 


Buyers who understand what        Budget Calculator

they  can afford,” recognize

their take-home pay is the

starting point for a budget

factoring food, clothing,

entertainment, medical and

 incidental expenses.  They consider savings for major purchases, periods of unemployment and unplanned and/or unavoidable expenses to be part of the budgetary process. 


In Summary, the buyer with a budget understands they’ll qualifyfor more home than they can comfortably “afford!”



Posted by

Beverly Femia

The Femia Team

"With Us, It's All About You!"


Beverly Femia


 Coldwell Banker Sea Coast Realty

1001 Military Cutoff Road, Suite 101 Wilmington, NC 28405

Fax to 1-866-784-3089 (Toll Free)

Beverly Femia

Broker / REALTOR®

Phone:Bev at (910) 279-9794

Search:Wilmington Area




Comments (4)

Not a real person
San Diego, CA

....Friday’s child is loving and giving,
Saturday’s child works hard for his living

It's Sunday

Nov 06, 2011 05:20 AM
Dianne Goode
Raleigh Cary Realty - Raleigh, NC

Good post!  It's a wise buyer who chooses a home in line with other lifestyle choices.  I am always glad to hear my client say, "Well, the bank says we can afford up to $X, but we feel  more confortable staying under. $Y."   That's  a much better place to start from than, "How much can we get??"   A mortgage is not free money == it literally comes at a price.



Nov 06, 2011 02:40 PM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Beverly, love your approach to how buyers get qualified and what that all means!   Getting qualifed and the amount you feel comfortable with are two different animals!

Mar 30, 2012 10:05 AM
Beverly Femia
BlueCoast Realty Corporation - Hampstead, NC
Broker Realtor Stager - Greater Wilmington, NC Are

Hi Joan,  This piece didn't attract much notice and that, in itself, is interesting.  I think I'm singing a song most don't want to hear!

Mar 31, 2012 12:13 AM

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