Are You Ready to Buy a Home in Wilmington?

Want to buy a home? Purchasing a home is a significant financial commitment, and it’s crucial to ensure you’re fully prepared. There are often unanticipated costs involved, so before taking the leap, consider the following factors to determine if homeownership is the right decision for you.

Our expert tips will help you assess your readiness and set you on the path to buying a home in Wilmington and the surrounding areas, including Jacksonville, Leland, Southport, Hubert, Bolivia, Onslow, Brunswick, New Hanover, and Pender.

Evaluating Your Financial Readiness Before You Buy a Home

Understanding Your Debt-to-Income Ratio

Before thinking to buy a home, it’s essential to have a clear picture of your financial situation. A key factor to consider is your debt-to-income (DTI) ratio, which is calculated by dividing your fixed monthly expenses by your gross monthly income.

A good DTI ratio is typically between 10-20%.
A DTI ratio of 36% or higher is considered risky by lenders and may affect your loan approval chances.

Mortgage Application Fees

Some lenders, especially those operating out of state, may charge an application or “lock” fee. These fees can be excessive and are not standard industry-wide. Before paying any upfront application fees:

Shop around for lenders who don’t charge unnecessary fees.
If you find an ideal loan with an application fee, try negotiating to reduce or remove it.

Additional Costs to Consider

Home Inspection

A home inspection is a crucial step in the home-buying process and should never be skipped. While it will cost a few hundred dollars upfront, it protects you from purchasing a property with hidden issues. If significant defects are found, you may be able to negotiate a lower sale price or request repairs before finalizing the deal.

Closing Costs

Closing costs typically amount to about 2% of the final sale price and include various fees, such as:

Cost Type	Description
Appraisal Fees	Ensures that before you buy a home, it is valued correctly for the loan amount.
Legal Fees	Covers the preparation and recording of legal documents.
Origination Fees	Charged by the lender for processing the loan.
Title Fees	Covers the title search and protects against potential liens.
Underwriting Fees	Charged for reviewing and approving the mortgage application.

Long-Term Expenses

Homeowners Association (HOA) Fees

If you’re moving into a neighborhood with an HOA, research their fees and regulations beforehand before you buy a home. HOA rules can be restrictive for some homeowners, while others appreciate the structured maintenance of the community.

Speak with neighbors to gauge their satisfaction with the HOA.
Determine if the HOA fees increase frequently and what services they cover.

Utility Costs

A new home might bring unexpected utility expenses:

A larger house will cost more to heat and cool.
Properties with a pool or spa will have increased water and electricity consumption.
Some utility companies require a security deposit before setting up services.

Home Improvement and Repairs

Even if the property appears move-in ready, you’ll likely want to make improvements. Small repairs like fixing a broken step or cracked tile can add up quickly. For major renovations, it may be easier to complete them before you buy a home.

Moving Costs to Keep in Mind

Relocation Expenses

Moving to a new home comes with additional expenses, including:

Packing supplies: boxes, tape, bubble wrap
Hiring professional movers or renting a moving truck
Replacing essential household items: dish racks, silverware organizers, and cleaning supplies

Ready to Buy a Home in Wilmington?

If you’re looking to buy a home in Wilmington, Jacksonville, Leland, Southport, or nearby areas, we can help! Our team specializes in connecting buyers with the perfect homes. Whether you’re searching for a single-family home, mobile home, or vacant land, we have the expertise to guide you through the process.

Are You REALLY Ready to Buy a Home in Wilmington?