How much home loan would I qualify for?
I make 2300 a month tax free on disability (net). I have no bills and $30,000 in the bank and good credit. If I use my entire savings as my down payment, what home price would I qualify for at todays interest rates. I live in New York State if that helps. Thanks!
- 1 decade agoBest Answer
First of all you can gross up your income to $2875. (income x 1.25%) interest rates are around 6.25% for a 30 year loan. Typically with good credit and the right loan officer you should be able to go up to a 64.9% debt ratio. That would allow you to have a mortgage payment, including property taxes and homeowners insurance, of $1,865.00. Assuming taxes and insurance eats up around $350.00. That should leave you with a loan amount of $246,000. Which more than likely is more than you would feel comfortable spending. Note...lenders will not allow stated or bank statement loans with people on a fixed income unless you can prove additional money is coming from some other source.Source(s): I'm a loan officer
- SkipLv 61 decade ago
All banks just about offer the same products and loan programs with the different qualifications in each of their programs. There are some programs that offer you a 100% loan. Keep your money in the bank and use the system to assist in your purchase.
Your interest rate is based on your credit score and how well you have paid your consumer debt over time.
In order to find out the type of loan programs you are qualified for you will have to fill out a loan application, with a mortgage broker, which you can find one in your local telephone book.
He will fill out this application, which takes awhile so grab your favorite beverage and sit down. Once you have completed the application, he will run your credit report which will have your credit scores. These credit scores will determine your interest rate.
The amount of your monthly debt payments you are required to pay as per your credit report and the amount of mortgage you can take on based on your income will determine the amount of house you will be able to purchase.
When you speak with the mortgage broker you will need the following documents to complete the loan application
#1 One month of pay stubs for each person that will be on the mortgage.
#2 Six months bank statements from each bank in which you bank as well as statements from any 401K from you place of employment.
#3 Two years of federal income tax along with the W-2 that match.
Once he has all that he need to do he can then issue you a pre-approval letter so you can purchase a home.
In this pre-approval letter will be the amount of house you are qualified to purchased.
Once he gives you this pre-approval you may now find a real estate agent to find yourself a home or he might have a referral.
Once you have found a home the real estate agent will then prepare a contract for you and the seller to sign.
Your mortgage broker will now order an appraisal to show proof of the property value.
The mortgage broker might ask for additional information or documentation, don't get all up tight this is normal, just supply the information or find the documents needed.
After the appraisal has been completed you will be called by your mortgage broker to sign your loan docs so you can take possession of your new home.
I this has been of some use to you, good luck
- Anonymous1 decade ago
There are so many factors that go into qualifying for a mortgage that only a loan officer should answer this for you. Don't forget to ask about all the programs that are available...(there are many). Then, sit down and choose the one that best suits your needs both immediate and long term. Good Luck with the purchase of your new home. If you would like a mortgage or REALTOR referral, please let me know. I work for a nation wide company and would happy to get someone in front of you.Source(s): I am a REALTOR in M/SP Minnesota
- 1 decade ago
you're better off knowing how much you can AFFORD. They will typically lend you way more than you can really afford, based on if you have good credit. The best thing to know is take your yearly salary and multiply by 2.5 But also write down a budget for a month playing with numbers......see what you will be comfortable paying. Also....you might want to just put 20,000 down and keep the 10,000 just for an emergency somewhere! You never know! With your income they might approve you for $150 to 200k....but you may be comfortable with a 100-120k house. Good luck! hope this helped!
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- bucchinLv 43 years ago
it may remember upon the taxes and insurance, yet without different debt, i'd imagine that you're properly qualified on condition that you've solid rankings. < 70% LTV. cost will be round 6.75% without factors. price on 200K will be type of $1300. once you upload in the taxes and insurance you're round $1700 which may furnish you with a housing fee ratio of 35% or so, yet with the low LTV, solid credit and no different debt i imagine you'd be ok. how you'll discover out is to position in an software. solid success.