October 5th, 2015 | What can I afford?
What you earn as income is a major factor in determining your ability to repay a home mortgage and is one of the top items considered by a Lender in mortgage financing.
Lenders use qualifying ratios, which are guidelines followed in Lending to determine what loan amount would be granted to a home buyer. 1 STOP Mortgage can help.
Let's look at other related factors:
1. Credit history. Have you paid your bills on time and met your obligations?
2. Current employment status. Are you a W2 employee or Self-Employed?
3. Current and future income. Do you anticipate a raise in the near future?
4. Monthly debt to income (DTI) ratio. Are your current monthly obligations excessive?
5. Is income augmented by 2nd or part-time job? Is its continuance predictable?
6. What's the history of current mortgage or a previous mortgage? Good payment history?