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Further
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Small Business Q & A: There Are No Dumb Business Questions, Not! - Tim Knox
Q: I'm curious. What is the dumbest business question you've ever been asked? -- Norris W. A: Shame on you, Norris. There is no such thing as a dumb business question. OK, that's not exactly true. There are dumb business questions and I do get...
Effective Meetings Begin With a Real Agenda - Steve Kaye
Everyone knows that an agenda is the key to an effective meeting. But an agenda that consists of a list of nouns, such as budget, software, and picnic, is useless. Here’s how to prepare a real agenda that puts you in control of the meeting. 1)...
The Midnight Warrior - Jenean Matthews
The Midnight Warrior By Jenean Matthews So you're starting a home-based business. You realize that getting up everyday, day after day, using some of your skills and knowledge to prosper someone else more than yourself is not your calling in...
Absence Makes the Heart Grow Fonder… - Janice D Byer MVA
However, in the world of business, this cliché may not necessarily be true. Sometimes it can be more like ‘Out of Site, Out of Mind’. Your existing clients are your most important business assets. They are already aware of the exceptional products...
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How Much Home Loan Can I Afford?
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Written By:
Gary Gresham
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Have you ever asked yourself how much home loan can I afford? If you know how much of a payment you qualify for before shopping for a home, your purchase will go much smoother and it can save you a lot of headaches.
How would you like to find the perfect place to live then not know if you can qualify for the loan? Long before you even start looking for your home, you need to know how much home loan you can afford.
Many factors are involved to qualify for a loan. Each lender has different guidelines and there are a multitude of different types of mortgage loans.
Jumbo mortgage loans will be harder to qualify for than a conforming mortgage loan. Other factors like down payment, loan amount and what is considered a good credit score will also make a difference.
There are some general guidelines lenders use that will help answer your question, how much home loan can I afford? These are only rough estimates, but you can get a good idea if you will qualify for a home loan and how much of a monthly payment you can afford.
1. Your mortgage payment, taxes, home owners insurance and any other fixed housing expense should be between 25% and 28% of your total gross (before taxes) monthly household income.
2. Your monthly housing costs (the total figure above) plus any other long term debt (monthly expenses extending longer than 11 months) such as car or boat loans, credit cards or installment loans should not exceed more than 40% of your gross (before taxes) monthly household income.
These figures can get higher if you have a higher credit score because you are a better risk to a lender and are more likely to pass their home loan guidelines.
What is considered a good credit score to a lender usually - continued below ...
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starts with a score of 680 and above. Lenders vary but a 680 score and above means you will likely get the very best interest rates and terms on your loan.
Lenders use the three major credit bureaus; Experian, Trans Union and Equifax to get an average credit score for you. It's a good idea to check your credit reports from all three major credit bureaus before you qualify for a home loan.
That way if you find any mistakes, you can clear them up before a lender sees your credit report. Once you get your credit report check carefully to see that everything is accurate.
If you find any errors, dispute it immediately with the three major credit bureaus. It takes time to get the errors off of your credit report. If you have a clear credit report before you apply for a loan you are more likely to have a pleasant experience instead of a nightmare.
The best way to know if you will qualify for a home loan is talk with a mortgage professional. This is what they are trained to do and they can give you much more accurate figures so there are no surprises when you go to make an offer.
So now when you are ready to qualify for a loan you'll know exactly how much home loan you can afford.
Copyright © 2005 Credit Repair Facts.com All Rights Reserved.
About the Author
This article is supplied by http://www.credit-repair-facts.com where you will find credit information, debt elimination programs and informative facts that give you the knowledge to correct your own credit and credit report. For more credit related articles like these go to: http://www.credit-repair-facts.com/articles_1.html
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| _Additional Resources ... |
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Protect Your Computer System With A Comprehensive Security Policy - Cavyl Stewart
The most difficult part of creating a Security Policy for your business is determining what, exactly, to include in it. Never heard of a Security Policy before? You’re not alone. But whether you are the only employee in your company or you have a...
Dealing With Search Engine Stress In A Home-Based Business - Kirk Bannerman
As a member of several search engine optimization forums, I have recently noticed (especially since Yahoo recently decided to try their hand at competing with Google) that the stress level of many webmasters has gone way up. This applies not only...
Shorn Of The Debt Responsibility - cashzilla
With UK personal debt spiralling out of control beyond the £1 trillion mark at a rate of £1 million every four minutes, and the number of declarations of bankruptcy on the increase, the Government has finally implemented measures to ensure lenders...
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