When you apply for a mortgage, you will likely see a pre-approval* package that will show you the maximum loan amount that you will likely qualify for.
This amount is what I’ve determined is a maximum your loan program will allow based on your debt-to-income ratio and many other factors such as credit score, ability to repay, etc.
This maximum amount may not be best for you and your family. In fact, I generally recommend purchasing below that theoretical max to improve your affordability.
So how much mortgage do you recommend Scott?
It depends on you, your financial story and many other factors. Consider taking my fast 60-second lending questionnaire that asks basic financial history questions and let’s hop on a call!
During the call, I’ll collect more data points that I can then determine what your max is, we’ll look at home values in the area you are looking at and come up with a solution that is specific to you and your family.
Generally, most mortgage programs call for 36% total debt to income including all debts and the new mortgage. Other programs allow me to stretch that to 43% and often, higher.
In the end, it really boils down to what’s suits your comfort level and what fits in the federal mortgage lending guidelines I must follow as your Utah home loan lender.
Don’t want to do the questionnaire? No problem at all. Send me a text to 435-590-1019 and let’s hop on a call together. I’m available from Monday – Saturday, 9AM-10PM on most days.
* Pre-approval is based on a preliminary review of credit information provided to Veritas Funding which has not been reviewed by underwriting. Final loan approval is subject to a full underwriting review of support documentation including, but not limited to, applicants’ creditworthiness, assets, income information, and a satisfactory appraisal.