How much can i get approved for? (Mortgage)?

no debt. $2000 in the bank. want a $50,000 house. take'n home $2,000/mo

4 Answers

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  • 1 decade ago
    Best Answer

    A mortgage pre-approval is based on several things.

    1. Debt to income ratio - if buying FHA (3.5% down pymt) then you can safely go to 43% of your GROSS monthly income for a mortgage payment plus all debts.

    If you earn $2000 monthly net and we gross that up 20% then you are at $2400 before taxes - at a 43% DTI you would qualify for a $1032 mortgage pymt with ZERO debt. That's much more than the $50,000 loan you are looking for as long as taxes and insurance are reasonable.

    HOWEVER, you still must have your credit checked, have been employed for 2 years and have a down payment of at least 3.5%.

    In other words there's more to it but it sounds like you are well on you r way to qualifying.

  • 1 decade ago

    Figuring you probably gross about $35,000 a year, you should be good for about $90,000 to $100,000. You are going to have to save a bit more, as even an FHA loan will require over $1,500 down and then closing costs (figure another $1,500 to $2,500).

  • Anonymous
    1 decade ago

    Hi,

    I can show you 10 quick credit fixes that will get you approved for a Mortgage:-

    http://www.gomestic.com/Personal-Finance/10-Quick-...

  • Anonymous
    1 decade ago

    you really need to go to a bank and get preapproved, this isn't the place to ask such questions.

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