How Much Mortgage Can I Afford?

Purchase and Refinance:

• FHA & VA Down to 500 Credit Scores
• 12-24 Months Bank Statements for Income
• Conventional
• No Income Verification for Primary, Secondary & Investment
• Foreign National
• ITIN
• Down Payment Assistance
• Construction to Permanent
• Investment
• Second Mortgage
• Home Equity Line of Credit
• USDA
• 1099 Only
• P&L Only
• Commercial

Property Type:

• Single Family
• 2 Unit
• 3 Unit
• 4 Unit
• Coop
• Condo
• Townhouse
• Second homes
• Manufactured homes
• Mobile homes
• Mixed-Use

How Much Mortgage Can I Afford?

The first step in determining your mortgage affordability is assessing your monthly income. Typically, stable income sources are considered such as your salary, wages, and any additional sources of income.

A thorough evaluation of your existing debts and monthly expenses is crucial. Consider your student loans, credit card payments, car loans, and other monthly obligations.

Your down payment plays a significant role in determining the loan amount you’ll need. A higher down payment can lower your monthly mortgage payments.

The Debt-to-Income (DTI) ratio is a vital metric that lenders use to assess your financial health. It compares your monthly debt payments to your gross monthly income.

Lenders generally prefer a DTI ratio below 28% for housing costs and below 36% for total debts. A lower DTI ratio indicates a healthier financial situation. FHA allows a DTI up to 56% for total debts.

Mortgage Options

Fixed-Rate Mortgages

Fixed-rate mortgages offer stability, with consistent interest rates throughout the loan term. They are suitable for long-term homeowners looking for predictability in their monthly payments.

Adjustable-Rate Mortgages

Adjustable-Rate Mortgages (ARMs) have lower initial interest rates that adjust after a certain period. ARMs can be advantageous if you plan to move or refinance before the rate adjustment.

How to Get Pre-Approved?

Getting pre-approved gives you a clear picture of the loan amount you qualify for. It also signals to sellers that you’re a serious buyer.

To get pre-approved, gather your financial documents and submit them for review. We’ll review your information and provide a pre-approval letter.