As you’ll see in the video, the lenders consider your debt-to-income ratio, which is a comparison of your gross (pre-tax) income to housing and non-housing expenses.

Non-housing expenses include such long-term debts as car or student loan payments, alimony, or child support.

According to the FHA, monthly mortgage payments should be no more than 29% of gross income, while the mortgage payment, combined with non-housing expenses, should total no more than 41% of income.
Lenders also consider cash available for down payment and closing costs credit history and the rest of your financial picture when determining your maximum loan amount.

TitleTap

TitleTap

TitleTap provides turn-key websites and marketing tools like Video, Social Media Management, and Email Marketing for Title Agents and Real Estate Attorneys. Get more great marketing tips like this specifically relevant to Real Estate, Title Insurance, Mortgage Lending, and Law by subscribing or visiting our blog above.
TitleTap

Related Post

How Can I Determine My Housing Needs Before I Begin The Search? http://fwd4.wistia.com/medias/gm7uqrlopk?embedType=iframe&videoFoam=true&videoWidth=640 Like the video shows, your home should fit the way you live, with spaces and features that appeal to the whole family. Before you begin looking at homes make a list of your priorities - things like ...
How Does Purchasing A Home Compare With Renting? http://fwd4.wistia.com/medias/pkeht78uj3?embedType=iframe&videoFoam=true&videoWidth=640 Like the guy in the video says, the two don't really compare at all. The one advantage of renting is being generally free of most maintenance responsibilities. But by renting, you lose the chance to...
How Do I Begin The Process Of Buying A Home? http://fwd4.wistia.com/medias/2plxajrqhc?embedType=iframe&videoFoam=true&videoWidth=640 Remember these pointers from the video: start by thinking about your situation. Are you ready to buy a home? How much can you afford in a monthly mortgage payment? How much space do you need...
Don't Go At It Alone. Download The Free PDF!"10 Uncommon Questions to Ask Before Hiring a Web Designer"

All websites are not created equal! Download a free PDF with all of the questions you need answered BEFORE hiring a web designer.

Download Now