How Much Can I Be Approved For

Dated: 04/12/2019

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How much can I be approved for?

Based on your individual financial standings, the lender will use guidelines to make sure your housing and debt payments will not exceed your income. 

Housing Expense Ratio

This shows how much of your gross monthly income will go toward the mortgage loan payment. Generally, your monthly mortgage loan payment, including principal, interest, real estate taxes and homeowner's insurance should not exceed 28% of your gross monthly income. 

Total Debt to Income Ratio

This will show how much of your gross income will go toward monthly debt payments including mortgage loan payment, credit cards, car loans, student loans, consumer loans and other obligations such as child support. Generally, your monthly debt obligation should not exceed 36% of your gross income. 

Once you have this figure, it's up to you to decide if the amount will suit your needs. You may decide a smaller mortgage and a smaller monthly payment would be a better solution. These ratios are general guidelines and may vary based on your loan program. Your lender can assist you in determining your ratios. From there, you can determine your maximum loan amount. 

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Laura Gomoll

Laura Gomoll is a 16-year real estate veteran, she knows first hand what it takes to help buyers and sellers to achieve their real estate goals. Laura enjoys working with first time buyers. "I really ....

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