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possible to get prequaled for too much $?

Husband and I just got pre-qualified on a VA loan for no down and $530K. We were really suprised because we are only counting his income and credit, which are $55k and 670. Frankly, it just seems like a lot. Are pre-quals usually higher than the final loan amount? by jayneygal.swifter... from Oceanside, California. Jan 20th 2014 Reply


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

Lenders use a very precise formula to determine how much a borrower can afford.. the formula only looks at "Before Tax" income.. so based on your $55K income, (assuming it's annual and not monthly), then your Debt to Income ratio would be well over the allowable, which leads me to believe that your $55K is "After Tax" income..and if that's the case, then your right in line with the guidelines, assuming you have no other debt. The lender doesn't look at your monthly reoccurring bills, only DEBT. 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

Jan 21st 2014
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Jennifer Jaye Fraser (QueenBeeBroker)
#199 ranked lender in California - 9 contributions

Anything is possible! Call me. I would like to hear your concerns. 310.877.3800 Jennifer Jaye

Jan 20th 2014
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Timothy Howard (timehoward)
#116 ranked lender in Arizona - 159 contributions

do not do this deal....your monthly income is around 4400 a month with 2200 at 50% debt to income ratio for all bill to be paid. I am working on a 160k loan and their payment is almost $1,000.00. Maybe they have a typo in there....and I pray this is correct..VA is more lenient on credit scores, so that is not a worry. Play the game safely and do not have the house own you, but you own the house....much less stress that way!

Jan 20th 2014
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Sean Young (SeanYoung)
#1 ranked lender in Colorado - 1,112 contributions

Pre-approvals are usually done at your max purchase price within a loan programs max debt to income ratio. If you qualify for more than what you would like to pay the pre-approval would be for that amount and sometimes they are specific to the transaction if you are providing it with an offer. $530K is too much for a $55k in annual income. Is there any other source of income being used in addition to the $55k? No matter what I would just double check with your loan officer and review it with him/her. Best wishes, Sean

Jan 20th 2014
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