Qualify

HOW MUCH CAN I QUALIFY FOR?


Most first time buyers are struck with one question.. How much house loan I can qualify for today ?   The answer is simple. It depends on your income and your expenses. The more income you have the more loan you can qualify for and the bigger the home you can afford. Its is also true the less expenses or debts you have it will increase your purchase power. Knowing what is exactly right is the key here, you r level of comfort and sense of owning something, not too small or big.  This varies from person to person and therefore people buy differnt homes. Buying a home based of affordability is the key here. At the bottom you will find home affordability calculator that can help you get the best answers.

Determining the loan amount you qualify for is relatively simply.  Use the following information in conjunction with the free financial calculators we have provided for you.  This will also give you a good idea of what Alliance Mortgage needs in order to help you qualify for your loan.

Calculating Income

Annual Income includes: This includes your base pay, bonus pay, commissions, overtime, child support, retirement income, annuity income, alimony, and 75% of rental income if you own any rental property. The figure used is Total Gross Income (income before taxes are taken out).

Calculating Debt

Debt is any recurring payments such as mortgages, vehicle loans, credit cards, student loans, child support, alimony payments, etc.  These combined debts are your Total Monthly Debt.

Debt Ratios

Generally, you will be permitted to spend about 28% to 33 % of your gross monthly income on housing if you are applying for a  A ppare loan, and 36% of monthly gross income on your total monthly debt.  This is generally known as 28/36 rule. The rule is flexible and varies from lender to lender.

Special Ratios & Qualifying

Alliance Mortgage provides loans that allow you to exceed these established debt ratios.  We can go up to 45% on some loans, giving you 28/45 or 35/45 ratios. And some loan programs will allow you to go as high as a 35/55 ratio.  This gives you the flexibility to buy more house with less income.

You can easily determine how much you can afford with our calculators, or you can contact us with your questions.


 

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