qualify

SIMPLE way to calculate how much MORTGAGE you qualify for



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Matt the mortgage guy here want to shoot

a quick video talking about a simple way

to calculate how much mortgage you're

qualify for now the point of this video

is to just give you some basic

information if you want to get a rough

estimate what you qualify for take into

consideration when I make this video I'm

making it really general so that it kind

of works for VA FHA conventional even

though different loan programs will have

different requirements this video will

give most people a general idea of what

they've qualify for and how to calculate

that so here goes your gross income

divided by your current debts plus the

mortgage is what lenders call debt to

income ratio and let's just call it 50%

or less what the lenders are looking for

some programs 43 some 45 some 50 some

even 55 57 but in general the 50 percent

mark will do you justice for doing a

rough calculation on what you'd qualify

for so you make $8,000 a month

your total payments credit cards student

loans car payments all the other stuff

that shows up on your credit report plus

the new mortgage can't exceed 50% of

your gross income so gross income 8050

percent of that is four thousand you've

got sixteen hundred in these other

payments you're gonna qualify for a

mortgage up to 2400 so something that's

very important to consider in this if

people say oh well I did some rough

calculations on my own and I could buy a

house up to six hundred thousand take

into consideration that based on how

much you're putting down you're gonna

have principal interest taxes homeowners

insurance and mortgage insurance a lot

of folks that are putting three percent

down or three and a half percent

don't factor in that $200 a month in

mortgage insurance or whatever that

number is the total cost HOA dues all of

that with your mortgage payment plus

your current debts can exceed 50 percent

of your gross income and that's the

basics of it there's a ton of stuff to

consider and I could spend an hour and a

half talking about all the you know

different variables that go into it but

this at least give you a rough idea when

you're sitting around thinking I don't

know if I qualify for that mortgage to

that mortgage gonna be twenty two

hundred a month well if you have very

little debt and you make six thousand

dollars a month gross

you'll probably qualify again this is

just to give you a general idea so you

can calculate on your own if you're

looking to get pre-approved and you're

serious about buying a house you you

always want to contact a professional it

doesn't cost you anything you submit a

loan application and your documents that

way the lender can look through it

they'll review your scenario and say

well you know you were calculating your

income is 7200 a month but when we

ordered your verification employment

since you have variable income we took a

two-year average and that to your

average is 6,400 a month so so things

like that is why you go ahead and get a

pre-approval but if you're just trying

to calculate on your own this is a very

good way to do that take your gross

monthly income times it by 50%

put all your debts in there plus what

the new mortgage is gonna be and those

gotta fall under 50% in general for

majority of loans like I said sometimes

forty five sometimes fifty five but

fifty is a good ballpark number you have

any questions at all please feel free to

reach out Matt the mortgage guy until

next time

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