FAQ #4 How much can I qualify for if I want to buy real estate?
Have you every heard the expression, “That is a loaded question!” If every there was one, that is it.
How much you can qualify for will depend on the property type, meaning is the application for a primary residence, second home or investment property?
It will also depend on the type of financing program you decide on, is it conventional, FHA, VA, USDA or Jumbo.
In addition, the total amount of any other outstanding liabilities including any child support or alimony payments will be used to calculate the new debt to income ratio. Different financing programs have different limit restrictions on the maximum debt to income ratio.
It will also depend on how much you have saved for the down payment, and whether or not reserve deposits will be required.
Then once again, the credit score will play a factor. If your middle credit score is less than 740, you may be subject to risk based pricing meaning your interest rate will be slightly higher. The higher your interest rate the lower the low amount.
Are you putting less than 20% down in the transaction? If so, you may be subject to mortgage insurance. Mortgage insurance guarantees the loan should you default. The owner of the mortgage would then receive the proceeds.
So, how can I help you qualify for a mortgage?
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The opinions and general information in this blog are soley those of Kathy Sheehan. Specifics regarding an individual case should be discussed in detail with a loan professional. For a confidential consultation, please feel free to contact me via phone or email. All terms and conditions are subject to change.