How much of a home loan would I be approved for? (approx)?

I have good credit, and make $45,000 a yr w/ $390 a month in car and student loans.... What do you think?

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  • Josh
    Lv 5
    1 decade ago
    Favorite Answer

    Wow.. you can really tell people are just shooting in the dark at this one. What you are able to afford is going to depend on what loan program you are able to use which can also vary by state. With good credit you should be looking AROUND a 40% debt to income ratio which I have to say again will vary by your program you use. Basically what this meansis that you take your income 3750 minus you debts 390 which leaves you with 3360. Out of that 3360 you will be able to use approximately 40% towards your total payment which would be $1344/mo total payment. This of course is assuming the figures you gave are exact, if not then you will need to use the exact figures. Now you will need to take out homeowners insurance and taxes which will vary by area but for example we will say your taxes are $3000/yr and insurance is $600. That means that $300/mo of your payment will be used for taxes and insurance leaving you with $1044/mo for your house. At a 6% interst rate that will buy about $170,000 house. Now again the debt ratio will vary by the program you use but that will get you close. If you will not have at least a 20% down payment you will also be charged mortgage insurance which will take roughly $80/mo off of what you can spend for a house.

    Hope this helps some instead of just throwing numbers out there like everyone else has. The best thing would be to call a lender and see exactly what you can qualify for with you credit and see what loan program and interest rate would be best for you. Good luck with everything!

    Source(s): Im a Realtor
  • 1 decade ago

    Buy a house with a payment you will be comfortable paying on. Also, remember that you will get interest and tax deductions which will lower your overall income taxes. People often are approved for a lot higher than they comfortably can afford. I've seen people get approved as high as 65% dti (debt to income), if they have good credit. I'd try to stick around 40% of your gross income, or 33% of your take home pay. Always remember, houses cost on avg 100-200/mo in repairs. The reason why it's that high on avg: furnaces, AC, roof, windows etc have limited lives. Also, calculate how much your utilites will run, if you can afford to contribute to IRA or 401k or both. If you can do all that and still feel comfortable, buy a house for what you can pay on. If your income goes up in the future you can always buy another house.

  • 1 decade ago

    You won't get much.

    No one can lock a rate for you until they have a complete loan application and credit report from you. Asking what you can get is premature. I can tell you that the maximum PITI payment that you can probably afford is about $1,175.

    I don't see you borrowing more than about $100,000 for a home. See a mortgage broker, if you think you can get something worthwhile in that range.

    Good luck to you.

    Source(s): Realtor, Mortgage Originator. See background on profile.
  • Anonymous
    1 decade ago

    That's pretty good. You could probably get a house work 100-150k.

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  • Anonymous
    1 decade ago

    You need a home for a home loan and then it depends on the value of your home and your mortgage

  • Anonymous
    1 decade ago

    you can afford a 1200 dollar monthly payment for your home.

    remember there will be bills so keep it modest.

  • Marcus
    Lv 4
    1 decade ago

    $600.00 per month for a home worth $75,000.

  • Amanda
    Lv 6
    1 decade ago

    Probably 140,000 or below.

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