Question : How is the amount of a home loan decided?
My husband and I have been approved for a $120K home loan. However, some other couples we know that make the same or less than we do were able to buy homes for up to $20K more than our approved loan. I know some of them also have more monthly bills than we do. So how is something like that decided? Should we shop around more?
- asked by CharChar76
All Answers:
Answer #1
they may more bills now than they did have whenpurchasing. The housing ratios should be around29% of gross wages (principal + interest + taxesmonthly + insurances monthly) the total expenseratio for all other accounts reporting in yourcredit file should be around 43% with the newpurchase included. This is how the loan must bestructured or less ratios if so desired by you thebuyer. So if you buy less then your ratios will beless. You also when making your statement do notknow what types of loans these people have. Somemay have qualified on an interest only note whenit was possible to do so several years back. Sothere is no way for me to give you a best answerwith out knowing all the factsI am a mortgagebanker in TN & KY
- answered by golferwhoworks
Answer #2
the loan ppl
- answered by bailey07
Answer #3
You need 20% down and 15 yr fixed rate mortgagewith PI not to exceed 25% of net pay.Tips: Don'tbuy a house if you are broke, don't take advicefrom broke people.
- answered by Bart M
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