QHow Large Of A Mortgage Loan Will I Be Able To Get?
AUsually, a borrower can qualify for a mortgage loan of up to four times their household's pre-tax income (assuming no debt). For example, if your family has an income of $30,000 a year, you can qualify for a mortgage of up to $120,000. With the same income and $500 of monthly debt, you can qualify for a mortgage of up to $50,000. Lenders when determining how large a mortgage you can obtain consider many factors. For example, lenders want to know personal information such as, credit and employment history, which includes information regarding your income, and job and you're past loan history. In addition, lenders generally prefer that your housing expenses (including mortgage payments, taxes, insurance and special assessments) do not exceed 28% of your gross monthly income. Other debt added to your housing expense should not exceed 38% of your gross monthly income. Federal Housing Administration (FHA) and Department of Veteran Affairs (VA) mortgage loan percentages may vary. However, there are many legal safeguards, which exist to ensure this information is used fairly. For example, the Fair Credit Reporting Act requires that lenders certify to the credit bureau the purpose for which this information is sought and that it will be used for no other purpose. The Equal Credit Opportunity Act prohibits discrimination in lending based on sex, marital status, race, national origin, religion, age, or because someone receives public assistance.