James V. Hecker

Santa Clarita California

  • About
    • About
    • Privacy Policy
    • Site Security
  • Mortgage Info
    • Buyer Info
    • Seller Info
    • Closing Costs
    • Home Appraisal
    • Home Inspection
    • Loan Checklist
    • Loan Process
    • Loan Programs
    • Mortgage FAQ
    • Mortgage Calculators
    • Mortgage Glossary
  • Properties
    • All Properties
  • Blog
  • Testimonials
  • Contact

Factors To Consider When Applying For A Home Mortgage

November 7, 2013 by James Hecker Leave a Comment

Factors To Consider When Applying For A Home MortgageOwning a home can be a sign of independence and success. It allows you to build up equity and the mortgage interest and property taxes are tax-deductible. What can you do to make a home affordable for you?

Reputable lenders look at a list of criteria to decide how much they’ll loan you. 

This List Includes:

  • Credit score
  • Existing assets including cash
  • Car leases or loans
  • Credit card balances
  • Debt consolidation loans
  • Home equity loans
  • Installment loans
  • Student loans
  • Other monthly debts
  • Size/source of your down payment

If you’d like to get an idea of what you can afford before talking to a lender, here are a few tools you can use to decide whether a home is within your budget.

Here Are Some Guidelines:

  • As a rule of thumb, your house hunting budget shouldn’t be more than 2.5 times your pre-tax annual income.  If you earn $50,000 a year, your budget for house hunting should be around $125,000.
  • Your Housing Expense Ratio, which is principal, interest, taxes and insurance shouldn’t be more than 25% to 28% of your pre-tax monthly income.
  • Your Debt-to-Income Ratio should be no more than 36% of your pre-tax monthly income.  This is the ratio between how much you owe and how much you earn.
  • Use an online calculator to figure how much home you can afford.

“Qualifying for” and “can afford” are two different things.  Shopping for a home within your budget will save you a lot of heartache now and in the future.

If you’d like help determining how much mortgage you can really afford, call your trusted mortgage professional today.

Filed Under: Mortgage Tips Tagged With: Mortgage Tips,Homebuyer Tips,Personal Finance

Leave a Reply

Your email address will not be published. Required fields are marked *

James Hecker

Contact James

Focus Lending Group, Inc.
BRE #00902195 • NMLS #214601
CALL 661.295.7030
FAX: 661.244.4932
james@james4loans.com


APPLY WITH JAMES →

Connect with Me!

Search articles

Rate Quote

  • This field is for validation purposes and should be left unchanged.

Latest Articles

  • Getting A Mortgage When Self-Employed: What You Need To Know
  • On Time, Every Time: How Being Late on Monthly Payments Can Affect Your Mortgage
  • What Is A Loan Contingency: An Overview
  • What’s Ahead For Mortgage Rates This Week – January 23, 2023
  • An Often-Overlooked Trick Can Help You Afford A Second House

Previous Posts

Categories

Our Location


27201 Tourney Rd. Ste 200
Valencia, CA 91355

Copyright © 2023 · Powered by MySMARTblog