What does it take to obtain a home loan in today’s highly regulated environment?
Although the process of getting a home loan may seem very overwhelming at first, working with the right lender can make it significantly better. It’s important to find the right combination of past experience and current expertise in dealing with the challenges of today’s market. So what does it take to get a home loan these days? To make it simple, I like to break it down into the following four characteristics lenders look at to determine eligibility for a home loan.
1. Sufficient Income
In general, your house payment and other monthly obligations should not exceed 43% of your gross monthly income. However, 43% is a general guideline not a hard and fast rule, and since the calculation of income and obligations can be subject to interpretation, you should give me a call to review your individual situation.
You can use this simple calculator to determine your general debt-to-income ratio. Debts should only be included in the total if they carry a consistent monthly payment.
Examples: Car loan, Student loans, Credit card debt, Alimony or Child Support, etc.
This should only be used as a rough estimate. For a more in depth analysis, please give me a call so I can review your specific scenario.