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Flexibility with max purchase price?

Say we are pre-approved for a mortgage payment of $2260 based on debt-to-income ratio. If we can prove we’ve been paying rent for $2575 for the last 3 years, can we have that amount adjusted for the mortgage loan? by mark200 from Seattle, Washington. Apr 21st 2016 Reply


Tim Barlow (tim@cornerstonehomemortgage.com)
#110 ranked lender in Washington - 8 contributions

Not if it is at the max debt ratios (and this is more conservative with some institutions), what kind of loan are approved for? Conventional i am assuming? It's funny you put this question out there but yet you have a professional who has approved your loan. Not being disrespectful but i question the level of rapport and the ability of some institutions/people to think outside of the box. You can reach me on my mobile right now at 360.250.3400 and i can provide you some alternatives.

Apr 21st 2016
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Dalibor Vavrek (Dalibor)
#89 ranked lender in Washington - 29 contributions

Simple answer is no because lenders have their limits on debt to income ratios regardless how much rent you pay. However we offer approvals up to 57% debt to income ratios so if your current approval is bellow that we could get you approved for a higher loan amount. You can contact me at 425-351-5363 or daliv@moneytolend.comDali

Apr 21st 2016
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William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,726 contributions

NO.. Conventional financing has a maximum allowable debt to income ratio of 45% and there is no variance or exceptions.. With FHA, you can go up to 56%-57%, but regardless of what you put down, you will pay mortgage insurance, and for most FHA loans, it's there for the life of the loan. the only way to remove it is to pay off your loan or refinance. FHA allows for loan amounts of up to $540,500 in King County... but if you go that high, your payments will far exceed 56%. There are other options though.. if you take some of the cash you are using to put down on the mortgage, and use it to pay off a car loan or some high payment credit card, then it's possible you can lower your ratios.. if you are not putting down 20%, then the loan will require PMI, but if you go the lender paid option, you can qualify for more.. There are several ways to address this, but without knowing all he details of your particular scenario, it's impossible to say.. The best advice I can give you is to contact a LOCAL mortgage broker and apply with them. Once they see your complete loan profile, they will be better equipped to advise you properly. Also, by applying with your LOCAL Broker, you have an advantage because he's familiar with local customs and works with many lenders with each one offering a different type of lending program. This is unlike the local bank which typically only has a few lending programs. The more lenders, the more lending options, and the more likely your scenario will be accepted.. Plus, the broker is experienced in seeking out the best loan terms for your particular scenario, and he has lower overhead which typically results in lower rates and fees than most of the larger lenders.. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com NMLS# 226347

Apr 22nd 2016
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