How Much Home Do I Qualify For?
Posted Aug 4, 2009 @ 2:12 pm, Viewed by 176 Visitors, Read 177 Times.A big question facing new homebuyers is "what can I qualify for?" When lenders are looking to approve a loan they're looking to see how much debt your income will carry, this is referred to as your debt to income ratio, or DTI. Ideally, lenders want to see your debt ratio at 45% or less. This means, your total montly payments on debt (car payments, credit cards, loans, and mortgage) must be 45% or less of your gross montly income. There is is a little leeway if you have high credit scores, or have a good amount of reserves in the bank, but beng conservative 45% should be your target debt ratio.
One thing to remember is that what you can qualify for, and what you can afford are 2 seperate things. When shopping for your mortgage, make sure your mortgage proffesional quotes you a payment including taxes, insruance and mortgage insurance (if applicable) so you can see where it fits in to your budget. If the payment is too high, you can either look at the option of buying down your rate, or looking at properties in a lower price range. Also keep in mind in this market there is still pleanty of sellers who are helping pay closing costs, if you have that option, it might be a way to use the seller credit to buy down your rate.
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I've lived in the DC metro area my entire life; growing up in Montgomery County Maryland and attending the University of Maryland. I now live in Arlington, Virginia. Living all around the DC area has given me a great understanding of the real estate market.
After graduating from the University of Maryland, I worked as a loan officer in Gaithersburg for three years. I then opened my own mortgage brokerage company, which I ran and operated successfully for several years before agreeing to a buyout by my partner. Now, I have found a home at Choice Finance where I am able to grow professionally and better serve my clients.
My experience has helped me refine my business techniques and find my niche in the FHA Jumbo Market. It has also enabled many clients to take advantage of this program, which in turn lowered intrest rates and saved them money. My combination of experience and know-how has lead me to become a great resource for my clients and enabled them to achieve their dream of homeownership. Read More
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