For anyone who is purchasing a house, whether it is a first home, a vacation home, or a new home because circumstances have changed, the first and most critical question that should be asked early on with a home mortgage lender is how much house one can afford.
There are several factors that must be taken into consideration to determine the size of the mortgage one can handle. If you’re looking for reputed home mortgage lenders then visit https://www.sumerhomeloans.com/.
Make sure you ask your home mortgage lender specific questions before purchasing a house.
The Four Basic Rules
A home mortgage lender will take into consideration four basic rules that will help a borrower interested in taking out a mortgage and purchasing a house:
- The income of the borrower (or borrowers if more than one person is purchasing the house)
- The borrower's debt to income ratio
- The down payment amount that a borrower can afford
- The monthly payment that the borrower can afford
Taking into consideration the criteria already mentioned, the underwriting guidelines for each home mortgage lender will vary. Some will be stricter than others when certifying the ability of the person purchasing a house to be able to pay.
This is simply the result of lenders having had problems with borrowers in the past, and it is just one of the hoops you must jump through in order to get a mortgage.
If you do the math before you start your home search or start talking to a lender, the process of purchasing a house will go much more smoothly and before you know it you will be handed the keys to the home of your dreams.