How Large of a Loan Can I be Approved for?
What Does My Mortgage Payment Include?
• Lenders use a debt-to-income ratio to determine the loan amount for which you may qualify.
• Typically, the anticipated housing payment is compared to gross earnings and debt.
• Many loan programs offer expanded guidelines that qualify applicants for higher loan amounts.
• Once you know your maximum loan amount, it’s up to you to decide if it’s right for you.
• Usually your monthly mortgage payment is made up of four amounts – often referred to as PITI:
• Certain funds may be held in an escrow account to pay tax and insurance bills, as they come due.