When you are buying...

3 crucial elements

The size of the mortgage you qualify is based mainly on the interest rate offered and your income. The higher the interest rate, the higher the monthly payment. And, the higher the monthly payment, the more income you will need to qualify for the mortgage. For conventional financing, lenders generally limit the monthly payment to 28% of your gross monthly income, although exceptions can be made depending on individual circumstances. The mount of debt you currently have may also factor in the decision.

Contacting a lender before you are actually ready to make an offer on a house can be a good idea. This head start gives you a chance to work out any problems that my arise without the pressure of contract deadlines. You also can get pre-approved for a loan, which will put you in a strong position if you end up making an offer on a house that receives offers from other buyers.

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