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millerja9 · Joined: 19 Jun 2009 Posts: 100 0.00 Dollars($)

HOW DOES THE LENDER DECIDE THE MAXIMUM LOAN AMOUNT THAT CAN AFFORD?

ross090909 · Joined: 04 Sep 2009 Posts: 82 -0.31 Dollars($)

There are several factor involves in deciding maximaum laon amount.The lender checks your debt-to-income ratio, which is a comparison of your gross (pre-tax) income to housing and non-housing expenses.
Non-housing expenses include long-term debts as car or student loan payments, alimony, or child support.

According to the FHA loan there is general requirement of monthly mortgage payments should be no more than 29% of gross income. Also the mortgage payment combined with non-housing expenses should total no more than 41% of income.

The lender also considers following thnigs when determining your maximum loan amount-
1) cash available for down payment
2) closing costs
3) credit history

lovegreg77 · Joined: 03 Sep 2009 Posts: 34 0.00 Dollars($)

calculator is available at http://www.mortgagefit.com/calculators/howmuch-afford.html. you can use them.

Company	Loan Type	APR	Est. Pmt.
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