Homeownership has always been the first rung on the ladder leading to household wealth. As Freddie Mac recently posted: Homeownership has cemented its role as part of the

Dated: February 21 2020
Views: 179
Income Requirements for Conventional Mortgage Explained | |
Take all of your bills every month and total them into one amount. Subtract that total from your gross monthly income to determine how much cash you have left over that's not spoken for. The remaining gross monthly income shows you your DTI. For example: your bills total $2,200 a month and your monthly income is $7,000. After paying your bills, you're left with $4,800 each month. This puts you at a 31% debt-to-income ratio, which is what lenders like to see as you can easily handle insurance and taxes. The lower your DTI, the better your mortgage terms, whereas the opposite is true of a higher DTI. DTI is just one part of determining income requirements. You may have a low DTI, but if your down payment and income aren't sufficient to cover the monthly mortgage, you're not likely to be approved for the home you want to buy. Let's take a look: the home you want is $100,000 and you have $5,000 to put down. That leaves you with a $307 monthly payment. But if you make $1,000 a month and have $600 in monthly bills, you're left with $400 for the mortgage, taxes, and insurance. You're not left with enough money to pay incidentals and are a poor risk for the lender. Source: Bankrate, LLC Wayne Gaddy 843-603-5552 If you are thinking of looking for a new home; I can help you find the best lender for your financial situation. Call today and lets get started. |
Local Real Estate Broker/REALTORĀ® representing Sellers and Buyers with Residential Homes, Condos, Vacation Homes, New Homes, Land and Investment Property since 2003. I would be honored to have an op....
Homeownership has always been the first rung on the ladder leading to household wealth. As Freddie Mac recently posted: Homeownership has cemented its role as part of the
Friends and Clients —The real estate market continues to surge ahead. However, clouds might be forming on the horizon for sellers. Let me give you the details:1. Record-low inventoryThere were
THESE WERE THE BIGGEST LESSONS LEARNED FROM THE 2020 REAL ESTATE MARKETThere were many lessons learned in 2020. For example, there is no such thing as toomuch toilet paper.While there were a
Some HighlightsDemand from homebuyers has skyrocketed this year, which means today’s sellers are poised to win big. This ideal moment in time to sell your house won’t last