How much mortgage can I qualify for?

Home Forums Mortgage How much mortgage can I qualify for?

  • Author
    Posts
  • #28326
    StellarFi
    Keymaster
    #28344
    Team StellarFi
    Keymaster

    The amount of mortgage you can qualify for is the same as how much you can afford. A percentage of your income is considered to decide how much loan you can qualify for. Generally, people use the 28/36 rule to decide how much they can spend on a home. According to this rule, your mortgage should not be more than 28% of your gross monthly income and not more than 36% of your total debt. 

    Lenders consider your credit score, loan term (whether it is a 15-year loan or a 30-year loan), cash reserves, other monthly and yearly expenses, and your debt-to-income ratio when deciding how much loan you can qualify for. Other factors such as property taxes and how much you can put down as a down payment also determine how much loan you can qualify for. 

    There are also other upfront costs like moving expenses, closing costs, home inspection fees, and other associated fees that borrowers need to consider when deciding to buy a home or apply for a mortgage.

  • You must be logged in to reply to this topic.

StellarFinance, Inc. and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

Related questions

Home Forums Mortgage Credit Reports & Scores

  • You must be logged in to create new topics.