How Do Lenders Decide The Maximum Loan Amount That Buyers Can Afford?
How do Lenders decide the maximum loan amount that buyers can afford? The lenders consider your debt to income ratio, which is a comparison of your gross, pretax income to housing and non-housing expenses. Non-housing expenses include such long term debts as car or student loan payments, alimony or child support. Lenders also consider cash available for down payment and closing costs, credit history, and the rest of your financial picture when determining your maximum loan amount.
Contact ERA Triangle Real Estate Group today at 919.981.6505 to team up with a company who is committed to you and in finding your new home!