Basics of Borrowing.
How Much Money You Make.
If you are a salary employee, we will take the gross annual income. If you have 2106 expense, it will be deducted from your income.
If you are self employed, we will use your last 2 years tax returns and average them over a 24 month period.
Your Other Monthly Debts.
The amount of debt you carry on your credit cards, student loans, car loans, revolving accounts will be used to calculate your debt to income ratio.
Current Interest Rates.
When rates are low, it allows you to qualify for a higher loan amount.
Banks use your credit score Experian, Equifax, Trans Union to predict how likely you are to repay your loan. You must meet a minimum average credit score to qualify for a home loan.