How Much Mortgage Can I Qualify For?
Hello and welcome to my How Much Mortgage Can I Qualify For blog. Let me start by introducing myself. My name is Chad and I am a 20 year veteran in the mortgage business.
The reason I decided to set up this blog is because I am tired of seeing mortgage sites out there with so much misinformation. It seems like most of the sites on this topic just stick some monthly mortgage calculator on there and have you punch in some numbers and poof here is the magic number of how much house can I qualify for.
Unfortunately, when you are actually dealing with a lender it is not as simple as that. There are several variables that go into determining how much mortgage can you afford. However, if you are curious to see what number it spits out, I have them on this site. Just remember, the calculator will not give you the an accurate answer, only a general ballpark of what you could qualify for.
There are many different types of loan products, and they all have different criteria. Some loans may allow for higher debt ratios, lower credit scores, or lower down payments.
Something else that seems
to never be taken into considerations is that most sites will just show you “How much mortgage can I qualify for”. What you really need to also educate yourself on is “How much mortgage can you afford”.
There is a big difference between them. What you qualify for is the amount a lender will lend you. What you can afford is another thing. Some things are not simply just numbers. You need to make sure that you take into consideration external factors that could affect your ability to pay your mortgage so that you don’t become another foreclosure statistic like so many people have in the last couple of years.
I will be doing several more posts below breaking down the different types of loans and how to qualify for them. I will also show you how a lender looks at your credit scores and which loan will work with lower credit scores. I will also show you how lenders look at your income and debts to come up with an amount they will lend you for a mortgage. And I will definitely answer the questions, “How much mortgage do I qualify for” and “How much of a mortgage can I afford”. Just keep scrolling down to get all the facts.