Buying a home might be a very wise idea for a family that makes timely rental payments to a landlord or to a property manager. Knowing how much you can afford to spend toward a home may be reassuring. After completing a mortgage pre-approval application, a lending professional from Team Barber of Family First Funding can provide the precise loan amount and monthly payment that you are currently eligible to receive.
Get Pre-Approved Before Starting Your Home SearchSome home buyers might spend a large portion of a gorgeous weekend driving around town to preview homes that are for sale. Shopping for a home often creates some memorable pastimes. However, if you know how much you can afford to borrow for a home, you may be able to avoid an emotional connectional with a property that is outside of your budget.
Working with a Team Barber mortgage expert will ensure that you receive assistance from a licensed lending professional. After reviewing your credit report, credit score and your annual earnings history, a mortgage adviser will be able to determine whether you are qualified for a home loan. Thereafter, you may need to supply some additional documentation, such as your recent bank statements, pay stubs, W-2 forms, proof of your rental history or other lender-required items.
Opportunities to Get Approved for a Larger Mortgage LoanIn terms of affordability, your mortgage loan approval is based on your monthly debt-to-income ratio. A permanent pay raise or a larger down payment could impact the amount of money that you are able to secure toward a home mortgage loan. For instance, a promotion or a pay increase of 10 percent or more could enable you to obtain a larger home loan.
Based on a 40-hour workweek, if you earn $25 per hour and your hourly earnings are permanently increased to $28 per hour, your weekly earnings would be $120 greater. Your monthly income (annualized) would increase by $520. The additional income could enable you to afford a monthly mortgage payment that is approximately $145 higher for a conventional mortgage loan and approximately $161 higher with a loan that is backed by the Federal Housing Administration.
Using an interest rate of 4 percent, the additional income could enable you to obtain a mortgage loan that is approximately $30,000 larger or $34,000 larger, respectively. While the above scenario gives you some details about the opportunity to potentially qualify for a larger mortgage loan, the actual terms will be based on the current interest rate, higher property taxes, added insurance costs and other factors.
Speaking with a Team Barber mortgage professional may enable you to discuss financing strategies to secure a large home loan. Perhaps, an adjustable mortgage rate, an interest rate buy down or making a larger down payment might increase your opportunities to obtain a large home mortgage loan.
Contact a Team Barber lending professional today to apply for a same-day mortgage loan approval and find out how much you can afford to borrow for a home loan: 732.299.4824 or email@example.com.