he first thing a lender
looks at when determining It does not matter if you feel
your ability to qualify for you can afford both the more
a mortgage is called your expensive home and the car
“debt-to-income” ratio. That is payment. The mortgage companies
the percentage of your gross approve based on their guidelines
monthly income that you spend on not yours. You should still take
long term debt. This includes the time to get pre-qualified
your mortgage payment, taxes, with a lender.
insurance and HOA fees. I also
includes any consumer debt Getting pre-qualified with a
payments such as credit cards, lender is one of the first steps
student loans or installment in any home purchase. Your
payments. Plus it includes car Realtor should be able to refer
payments. you to a good one. Realtors work
with lenders on a daily basis and
Now you’re wondering just how can offer valuable referrals
much that new car payment can based on past experience with
reduce the purchase price of your lenders. That experience is
new home. Let’s crunch some invaluable when searching for
numbers. Say you earn $5000 per well qualified professionals.
month and have an average car
payment of $400 per month. The lender will crunch the
Calculating based off an 8% numbers and evaluate your credit
interest rate that car payment to determine what you qualify for
would cut your purchase power on and the terms. That car payment
your new home by about $55,000. will come into play here and
That makes a considerable affect how much of a home you
difference in the type of home qualify for.
you will be able to purchase.
If you’re thinking of purchasing google_ad_channel
both a home and a car in the near ="3545651507";
future, purchase the home first
or you may be living in the car. google_color_border =
"FFFFFF";
google_color_bg = "FFFFFF";
type="text/javascript">
google_ad_width = 728;
google_ad_height = 90; type="text/javascript"
google_ad_format =
"728x90_as"; src="http://pagead2.googlesyndica
tion.com/pagead/show_ads.js">
google_ad_type =
"text_image";
About the Author:
As your Denver Realtor Bruce Swedal provides professional real estate services to the entire Denver real estate market and surrounding areas.
