HARRISONBURG HOMEOWNER
  • Blog
  • Sell a Home
  • Find a Home
    • Buying Guide
    • New Listings
  • Contact
  • Lakewood Estates
    • Active Listings
    • Plats and Covenants
  • Kiva Program

How the Mortgage Company Decides Your Max Loan Amount

7/9/2014

0 Comments

 
The first thing lenders will look at is your debt-to-income ratio.  The less debt you have and the more income the better.  The debt-to-income ratio compares your pre-tax income to your housing and non-housing expenses.  Some examples of non-housing expenses are debts, such as student loans, credit cards, car loans, alimony, and child support. 

So what do the lenders do with this ratio?  According to the FHA, a mortgage payment should not exceed 29% of your gross income.  In addition,  your mortgage payment combined with the non-housing expenses should not exceed 41% of gross income. 
Picture
These are not the only determining factors.  The lenders will also consider the cash you have available to put down on the house.  Finally, your lender will take into consideration your credit history to determine the maximum loan amount. 

If you have any interest in purchasing a home, it doesn't hurt to contact a mortgage company to see what the maximum loan amount you can qualify for.  The consultation is generally less than an hour and doesn't cost you anything.  Feel free to contact me for suggestions.  
Source: hud.gov
0 Comments



Leave a Reply.

    RSS Feed

    Categories

    All
    Appraisal
    Association Fee
    Backyard Fire
    Bank Owned Homes
    Best Of Harrisonburg
    Best Of The Valley
    Bidding War
    Broadway
    Bubble
    Buyer Profiles
    Buying
    Cash
    Closing Costs
    Commercial
    Coronavirus
    Deferral
    Depreciation
    Development
    Down Payment
    Featured Listings
    First Time Homebuyer
    Flipping Real Estate
    Forbearance
    FSBO
    Getting Ready To List
    GIS
    Harrisonburg
    Home Inspection
    Home Preperation
    Inventory
    Investment
    JMU
    Key Terms
    Kitchen
    Land
    Loan Commitment
    Local Guide
    Map
    Marketing
    Market Report
    Massanutten
    Mortgage
    Moving
    National Statistics
    Negotiations
    New Construction
    Office
    Organizing
    Penn Laird
    PMI
    Preston Lake
    Recasting
    Refinance
    REI
    Relocation
    Remodeling
    Rental
    Rockingham
    Safety
    Sales Forecast
    School District
    Search
    Sellers Market
    Selling
    Settlement
    Staging
    Tax
    Timberville
    Title Insurance
    Township
    TRID
    Utility Costs
    Utilty
    Video
    Virtual Reality
    Weekly Report
    Zillow

Picture
Picture
Email - Click Here
Phone - 540-246-9067
Website - www.mattiasclymer.com
​Schedule a Showing, Meeting, Etc...

Funkhouser Real Estate Group  |  401 University Boulevard, Harrisonburg, VA 22801  |  540-434-2400  |  ©2021  |  Privacy Policy  |  All rights reserved.

Licensed in the Commonwealth of Virginia
  • Blog
  • Sell a Home
  • Find a Home
    • Buying Guide
    • New Listings
  • Contact
  • Lakewood Estates
    • Active Listings
    • Plats and Covenants
  • Kiva Program