Get Your Mortgage Rate Quote in Just 30 Seconds

Mortgage rates change every day, and your rate will vary based on your location, finances, and other factors. Get your FREE customized rate comparison below.

How Much Are You Eligible For?

Determine How Much Mortgage You Can Afford

Most first-time buyers are in a peculiar position when deciding to buy a property.

They want to know what kind of homes they may purchase, but they also need to know, “How much mortgage am I eligible for?”

Fortunately, there is an easy way to receive a preliminary estimate so that you may begin online house hunting in your region.

Mortgage Calculators

Mortgage calculators can serve as a launching point for your house search. Nevertheless, not all mortgage calculators are equal.

You should look for one that considers your mortgage payment, not just the principle and interest. Include property taxes, homeowner’s insurance, and HOA fees. The lender will see your payment in this manner, and so should you.

This mortgage calculator accounts for all of these charges. In addition, it allows you to estimate the price of a property based on your income or desired monthly payment.

Consider utilizing loan-specific calculators as well. For instance, if your credit score is poor, you may be eligible for an FHA loan. However, your FHA loan fees will differ from those of a conventional loan. For this reason, we’ve developed four loan-type-specific calculators:

  • Conventional loan calculator
  • FHA loan calculator
  • USDA loan calculator
  • VA loan calculator

However, loan calculators are not ideal. This is because you cannot always predict the exact income and debt figures the lender will use. For example, your income will only be considered after write-offs if you are self-employed. It is possible that side jobs, bonuses, and overtime are not regarded as qualified income, depending on the applicant’s past.

Therefore, if you’re serious about purchasing a property, you should speak with a lender and find out how they evaluate your obligations and income. With pre-approval from a lender, you may begin your house search with confidence.

What Exactly Is DTI?

DTI is an abbreviation you may frequently hear while applying for a mortgage. It stands for “debt-to-income ratio” and compares your monthly debt payments to your qualifying income.

If you have decent credit, the maximum DTI to qualify is often about 45 percent. In this scenario, you would be accepted for a mortgage with an all-inclusive monthly payment of $2,000.

With a 10% down payment, a property would cost roughly $325,000 at today’s interest rates.

However, if you’re performing the calculations on your own, it’s pretty simple to make mistakes. If you want to purchase within the next six months, it is suggested that you consult with a specialist.

Homebuyers Should Speak With a Lender as Soon as Possible

It would be disheartening to calculate your maximum mortgage amount only to realize that you do not qualify.

There are several difficult-to-determine factors, such as credit score, changing income, and debt payments.

Consult a lender and obtain a pre-approval letter if you want to look at properties shortly. This document will detail the precise mortgage amount and house price for which you qualify. It also serves as your pass to physically tour residences. Real estate brokers need it to take you house hunting.

A pre-approval letter is often free, and you are not required to utilize that lender if you discover a better mortgage deal elsewhere.

Check the first post in this series for additional information on purchasing a home: “What is the first step in purchasing a home?”

Popular posts

7 Refinance Strategies
7 Refinance Strategies

Refinance to a lower interest rate: If interest rates have dropped since you took out your original mortgage, refinancing to a lower rate can help you save money on your monthly payments and reduce the overall cost of your loan. Refinance to a shorter loan term:...

7 Refinance Strategies
Is Refinancing With Your Present Lender Preferable?

Do Not Accept the First Refinancing Offer You Receive Homeowners should not accept the first refinancing rate provided to them. This is particularly important if you are applying with your existing lender. Some mortgage lenders have mechanisms in place that prioritize...


Don’t worry, we don’t spam

calculate your monthly mortgage payment

Related Topics

Helpful Links

Daily mortgage rate trends

Best mortgage lenders

First-time homebuyers programs by state

Loan limits by state

Types of mortgages

APR vs interest rate

Understanding PMI

Related Posts

No Results Found

The page you requested could not be found. Try refining your search, or use the navigation above to locate the post.