Understanding Your Home Mortgage
Homes often sell fast in today’s market and buyers and sellers are both anxious to move quickly! Being pre-approved for your home mortgage is essential and may provide a definite competitive advantage as it strengthens your offer and enables you to act immediately. Gregg works with local mortgage lenders that provide great service, find the mortgage loan product that is best for you and get you pre-approved quickly.
Use this Home Mortgage Calculator to calculate your monthly payment with applicable financial charges, PMI, hazard insurance, and property taxes.
Mortgage Loan Pre-Approval
Once the best home mortgage lending program is chosen, your lender will notify you of the maximum purchase price and corresponding loan amount. Although the pre-approval determinization is based on your credit score, debt-to-income ratio, employment history, and down payment; you get to decide your comfort zone. Lending qualification and final approval are based on five key mortgage components. Collectively these factors are required for pre-approval of the mortgage loan.
Top 5 Factors Mortgage Lenders Considerations:
- The Size of Your Down Payment. When you’re trying to buy a home, the more money you put down, the less you’ll have to borrow from a lender.
- Your Credit History.
- Your Work History.
- Your Debt-to-Income Ratio.
- The Type of Home Mortgage Loan You’re Interested In.
The lender won’t understand the nuances of your lifestyle and spending patterns quite as well as you do. Don’t forget to leave a little room for the unexpected – to cover all the new opportunities your home will give you for spending money; furnishings, landscaping, repairs, and upgrades just to name a few.
Debt To Income Ratio
Historically, banks have used a maximum DTI (debt-to-income ratio) of 28/36 as the benchmark for loan approval. The maximum total monthly house payment was 28% of the borrower’s gross monthly income and the total debt load (including the house payment, car payments, student loan payments, and credit card payments, etc.) was 36% of the gross monthly income. In today’s complex world of utilizing technology, the maximum monthly debts are determined by a computer formula that applies weight to all the key factors (credit, DTI, down payment, and employment stability).
A person with an 800 credit score with a 20% down payment may qualify for a higher DTI than someone with a 680 credit score putting 5% down. These unknown variances emphasize the importance of getting pre-approved upfront. You will be much less stressed once you know your maximum qualifications, how much money you need for closing, and the house payment.
When it comes to home mortgage approval factors, there are many considerations. Your credit score and debt-to-income ratio carry the most weight for potential mortgage lenders.
Although home prices are rising, rates are at all-time lows bringing down house payments which is why it’s a great time to buy. In many cases, available houses are selling in one day, so it is more important than ever to have Gregg Sutter connect you to a mortgage lender you can trust who will look out for your best interest and provide excellent mortgage loan processing customer service. You will have peace of mind knowing you are pre-approved for a mortgage loan and ready to make a strong offer out of the gate! Call Gregg Sutter today!
What Does Your Perfect Home Look Like?
Let’s chat soon. To find your perfect home I want to learn about your lifestyle. Dreaming of a big back yard for the children? Do you have a school district in mind? Do you need a 3-car garage to hold your motorcycles? It’s silly to “Go Shopping” until we have a plan. Having 40 years of real estate experience and a builder’s background, Gregg will help you find the perfect home that best suits your needs and dreams. First-time buyers can relax as I am dedicated to helping you navigate through the home buying process from soup to nuts.
Homes Sell Fast – Get Pre-Approved For Your Home Mortgage
Gregg Sutter is a licensed Keller Williams Real Estate Agent in Ohio & Kentucky. Whether you are looking for your first home, ready for a larger home, or seeking to downsize – there are plenty of beautiful homes in the Cincinnati Real Estate Market. Getting Pre-Approved will help you to purchase the home of your dreams. Gregg has been in the construction and real estate market all his adult life. He knows Southwest Ohio well!
Let’s go shopping!