how do lenders decide the maximum loan i can afford?
TRANSCRIPT
How Do Lenders Decide The Maximum Loan Amount I can afford?
Liz Kroft | Realtor®
LETS START WITH THE BASICS…
LETS START WITH THE BASICS…
the lenders will consider your
to
LETS START WITH THE BASICS…
a comparison of your gross (pre-tax) income to housing and non-housing
expenses
Debt to income ratio
LETS START WITH THE BASICS…
= long term debts
Non-Housing Costs
student loans car payments child support
the FHA has some thoughts about all of this
weird, right? …not!
LETS START WITH THE BASICS…
monthly mortgage payments should be
no more than 29% of gross income
LETS START WITH THE BASICS…
mortgage payment combined with non-housing expenses
should be
no more than 41% of gross income
lenders consider a few other things
LETS START WITH THE BASICS…
- cash available for down payment - - cash available for closing costs -
- credit history - &
- the rest of your financial picture -
OTHER FACTORSfor determining your maximum loan amount
LIZ KROFT
REALTOR® Santa Cruz & Campbell, California
d: 408.502.7011 | c: 831.854.7489 [email protected] www.lizkroft.com
REALTOR® Santa Cruz & Campbell, California
d: 408.502.7011 | c: 831.854.7489 [email protected] www.lizkroft.com
calbre 01937727
If you have any questions, I would love to help in any way I can