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If I make around $60k, have a credit score of 740 with a low DTI. What price range can I shop for to buy a home?

by hannah52 from Carson, California. May 29th 2018 Reply

Blake Kleckner (BlakeK)
#391 ranked lender in California - 261 contributions

A lender will allow up to 50% of your gross income monthly for total debt for a conventional loan. 50% of $5K/mo. = $2,500 less the monthly debt showing on your credit report = how much your housing debt can be. What do the minimum monthly payments on your credit report total? Give me a call 16/7, or email me your phone number so I can call you, and I'll be happy to walk you through the process. To learn more about me and our mortgage brokerage, click on my picture. When the next page pops up, click on "Website" and you will be redirected to ours. If you get a chance, read some of my blogposts on Lender411. They are quite informative. We work exclusively in CA and get loans done fast, typically in less than 30 days, at low interest rates and costs. I started doing mortgage loans in CA in 2005, only do them here so I have an exceptional understanding of this extraordinary market, and, unlike the vast majority of loan officers, I am an accountant by education. As such, I am able to analyze current market conditions and structure creative loan alternatives for my clients in a manner much different, and more advantageous to them, than virtually all other loan officers. Representing more than 60 quality lenders that offer in excess of 1,500 loan programs, we definitely have something for everybody.

May 29th 2018
William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,728 contributions

FHA will let you go as high as 57% DTI *($2850 per month).. Keep in mind that DTI is calculated by adding up your minimum monthly payments on your debt.. Credit card's, car loan, student loans, etc... then add the new housing payment.. if you are at $2850 or below, you can use FHA.. As far as what price range you can go.. it's impossible to know without knowing what your actual debt is, and how much you have to put down.. It takes 5 minutes on the phone and I'd be happy to help.. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 NMLS# 226347 / LendUS, NMLS 1938/ AZMB0121893

May 30th 2018
Larry Gray (lgray_312_247)
#597 ranked lender in California - 1,139 contributions

You received some good answers on what some of the qualifying requirements are and at least suggestions on estimating your prospective home purchase maximum loan amount. A low DTI would be relative since $300 a month in liabilities may not be much in terms of the average debt one has at your income level, but it can certainly make a big difference in how much as a mortgage bank/company we can loan you. I highly encourage you to get qualified with a lender and find out. You can feel comfortable, when ready to start looking for a home, to know what you qualify for and better yet, have an actual pre-approval letter from a lender. You always have the option of shopping for quotes thereafter if you are not sure of the lender or whether you have been approved at a competitive rate.We professionals all have handled mortgage loans wherein some other lender was the initial qualifying bank.

Jun 4th 2018
Joe Metzler (JoeMetzler)
#1 ranked lender in Minnesota - 4,529 contributions

The quick and easy get you into the ballpark number is simple, just take 4 times your yearly income. So a $60,000 income (times 4) will generally get you around a $240,000 home. Of course the end result is much more complicated. Down payment and overall debt play a big part in maybe changing the up or down.

May 31st 2018
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