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As an added service, Buyers Only Fresno.com Real Estate and
Mortgage has provided the attached mortgage calculator and
pre-qualifier. This is to aid you in your home search and
give you a better idea of how much a payment might be in
relation to the home price. Also, the pre-qualifier can help
you analyze your income to debt ratio which is a big part of
a lenders decision making process in granting your loan.
As a mortgage broker, Buyers only Fresno.com can assist you
in many ways to help you obtain financing for your home
purchase. Whether it’s purchase money, refinance or 2nd
trust deeds, we are readily available to answer your
questions or help analyze your options to find the best
financing for you.
One thing to bear in mind; not all lenders provide the best
financing options for all kinds of loans, and that includes
us. If we cannot offer you the best financing product for
you, or you just prefer to finance elsewhere, you should do
so. However, as an experienced lender, we would still like
to offer our advise and consultation to you to see that you
are being treated fairly and that your home purchase can be
a pleasant experience. Thank you.
Pre
Qualification
One of the primary indicators a loan underwriter will look
for in granting your loan is called your income to debt
ratio. That is, what is the percentage of your monthly
liabilities, as opposed to your gross monthly income.
Without going into great detail, this is a simple way to
figure your overall income to debt ratio. EXAMPLE:
Total of Monthly Payments $ 3,500.00
(include your proposed house payment, auto, loans, credit
cards. Utilities, food, etc. not required).
Divided By
Total
Gross Monthly Income $ 9,000.00 change to %:
38.8%.
Also include Monthly Taxes and Insurance:
Taxes: Multiply the home price by 1.250%
($300,000x1.250=$3,750.00/yr. Divided by 12= $312.50/mo.)
Insurance: Approx. $60.00/mo. on a home price of $300k.
We recommend that you shop for quotes.
This changes the above percentage to 41.3%. Most lender
underwriting guidelines permit an overall income to debt
ratio of up to 45%, some higher. Hopefully this will aid you
in analyzing what kind of payment and what price of home you
can qualify for. Email Steve with any questions.
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