{"id":3545,"date":"2015-08-18T15:58:23","date_gmt":"2015-08-18T15:58:23","guid":{"rendered":"https:\/\/www.juddbuilders.com\/creeksideblog\/?p=191"},"modified":"2017-10-04T16:50:13","modified_gmt":"2017-10-04T20:50:13","slug":"determining-how-much-you-can-afford-to-borrow","status":"publish","type":"post","link":"https:\/\/www.juddbuilders.com\/juddbuildersblog\/2015\/08\/18\/determining-how-much-you-can-afford-to-borrow\/","title":{"rendered":"Determining How Much You Can Afford to Borrow"},"content":{"rendered":"

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How can you be certain how much you can afford when applying for a loan? Many home shoppers\u00a0find a\u00a0quick fix answer on websites that provide an online calculator. Simply entering your monthly income, expenses and what you believe to be your credit score in a computer program won\u2019t accurately predict what a specific lender will actually agree to lend you. More important, it won\u2019t give you insights into the often flexible, case-by-case factors that lenders can use in order\u00a0to get your loan application approved.<\/p>\n

Here\u2019s what really matters to lenders and how you can more accurately foresee whether or not you\u2019ll qualify for a given loan amount.<\/p>\n

1.\u00a0Ratios are important:<\/strong> Every mortgage lender uses debt-to-income (DTI) ratios\u00a0to judge your financial capability to repay a loan. It is used to measure your gross monthly household income and compare it to two types of debt: The money you spend each month on core housing-related expenses<\/em> combined and the amount you spend on non-housing debts<\/em>, such as credit cards, auto loans, student loans, etc.<\/p>\n

2. Your Housing Ratio:<\/strong><\/p>\n

How much will your top housing-related costs be per month and what percentage of your income will they represent?<\/p>\n

These housing costs include<\/p>\n