Loans By Kathy: FAQ #4 How much can I qualify for if I want to buy real estate?

FAQ #4 How much can I qualify for if I want to buy real estate?

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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Kathy Sheehan Senior Loan Officer






Bay Equity LLC

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11475 Great Oaks Way, Suite 350, Alpharetta, GA 30002

800.BAY.3703 Bay Equity LLC NMLS ID#76988



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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.


Comment balloon 6 commentsKathy Sheehan • June 03 2012 03:51PM


Its not really a loaded question its just one that to be answered properly has a lot of variables that need defined...


Posted by David Shamansky, Creative, Aggressive & 560 FICO - OK, Colorado Mtg (US Mortgages - David Shamansky) almost 7 years ago

The question is reasonable.  However,  you answer must necessarily be many more questions.  By asking the right questions you help them determine the answer.

Posted by Grant Schneider, Your Coach Helping You Create Successful Outcomes (Performance Development Strategies) almost 7 years ago

Hi Kathy, good basic information for any buyer looking to obtain a mortgage.  Best of success to you this year!

Posted by Jordon Wheeler, J W Group Real Estate Sales and Service (The Jordon Wheeler Group) almost 7 years ago

David thank you for your comment.

Grant, it is all about asking questions.

Jordon, thanks for the compliment!  All the best my friend!

Posted by Kathy Sheehan, Senior Loan Officer (Bay Equity, LLC 770-634-4021) almost 7 years ago

My easy answer is I have mortgage experts on my team that will gladly speak with you and preapprove you and then once we have that magic number, we can start your home search to find your next home.

Posted by Florida Tolbert Team Keller Williams Advantage, Keller Williams Land Division Specialist (Keller Williams Advantage III Realty in Lake Nona) almost 7 years ago

Kevin, that is very wise advice for your clients.  

Posted by Kathy Sheehan, Senior Loan Officer (Bay Equity, LLC 770-634-4021) almost 7 years ago