Mortgage Qualification Calculator Eliminates Unpleasant Surprises!

A mortgage qualification calculator can help determine your maximum loan amount, and if you qualify before going to a Lender!

A qualification calculator will tell you how much of a home purchase you can qualify for before you begin shopping around for homes and lenders. It gives you a tremendous amount of bargaining power and you won’t be subjected to any unpleasant surprises.

Many people, unfortunately, are not aware of the factors that go into determining how much home they can afford and whether they can be qualified for a home loan or not.
For example, many people are not aware that their lender’s decision regarding their qualification for a home loan is not limited solely to the amount of the home purchase and their credit rating.
Many home loans are subject to underwriting guidelines regarding maximum "debt to income ratio" and "maximum housing to income ratio."

A mortgage qualification calculator can be especially useful in determining these two ratios!

Debt to Income Ratio
First, let’s look at your debt to income ratio using a mortgage qualification calculator. This formula refers to the percentage of your monthly gross income that is paid toward both housing expenses and recurring debt. This amount would include the following items:

• Child support
• Credit card payments
• Car loans
• Other financial obligations that will not be paid off within a period of about one year.

Housing to Income Ratio
Your housing to income ratio refers to the maximum percentage of your monthly gross income that is allowed to go toward housing expenses. This figure would include the following items:

• loan principle
• loan interest
• private mortgage insurance
• hazard insurance
• property taxes
• homeowner’s association dues

According to the guidelines of most lenders your housing to income ratio cannot exceed 28%.

Example
Using a mortgage qualification calculator, let’s look at an example. Assuming you earn $50,000 per year, your monthly gross income would be $4166.67 per month.
A mortgage qualification calculator would tell us that based on a maximum percentage of 28% you could have no more than $1167 per month in housing expenses and no more than a total of $1500 in recurring debt (including housing payment.) 

Exceptions to Every Rule
You should keep in mind that not all underwriting requirements are the same. Some lenders will allow you to go up a maximum housing to income ratio of 32% and a maximum debt to income ratio of 40%. In many cases your credit rating will affect the percentage amount that the lenders will allow.

For example, if you happen to have a higher debt to income ratio than the amount that the lender will normally allow but you also have an excellent credit rating then it is possible that the lender may go ahead and qualify you for the loan. This is because you have demonstrated that you can responsibly handle that kind of debt load.

On the other hand, if you have a marginal debt to income ratio and your credit rating is in the poor to bad range you can anticipate that the lender may refuse to make the loan to you at all.
At the very least they may require a higher down payment and/or higher interest rate in order to compensate the financial institution for the risk they are taking in extending you the loan.

To avoid unnecessary surprises when you begin shopping for your next home, take advantage of the benefits offered by using a mortgage qualification calculator.
Keep in mind that you will need some pertinent information in order to use a mortgage qualification calculator:

• desired mortgage
• years of mortgage
• yearly interest rate
• yearly property taxes and hazard insurance
• salary
• amount of other debts

For more information on a quick mortgage qualification go to this mortgage qualification calculator and see what you qualify for!

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80/20 Mortgage Calculator and Program

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For an easy to use mortgage qualifier calculator go mortgage qualifier calculator.

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  A Mortgage Qualifier Calculator is your First Step to Owning a Home. A Mortgage Qualifier Calculator is your Best Tool to Determining what kind of Mortgage you can Afford.

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