Home Buying in Etters>Question Details

Anna, Both Buyer and Seller in Greencastle, PA

If we pay off all of our school loans and auto loans could we be approved for a bigger home loan??

Asked by Anna, Greencastle, PA Wed Mar 30, 2011

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6
As a local Etters, REALTOR, I here similar questions on a daily basis. There are a LOT of factors that go into answering the question of "How much can I get approved for?". Something to definately consider is the USDA financing option as there is the option for 100% financing, and NO PMI(primary mortgage insurance) that typically accompanies FHA or Conventional loans. USDA is a "rurul housing" loan program and if you know the area, as you head south on I-83 once you hit the Fishing Creek exit everything should qualify. If you are considering Etters or really any of Central PA, I'd be happy to address any specific questions you have.
Thanks,
Andy Rhine, REALTOR
(717) 903-5722
0 votes Thank Flag Link Fri Jun 24, 2011
It all depends on your "front end" and "back end" debt-to-income ratios.

In general, virtually all lenders have a limit on the "front end" ratio - which is the total monthly housing expense which includes the mortgage principal and interest, 1/12th of your annual property taxes and homeowner's insurance premiums, mortgage insurance (if any) and homeowner's insurance premiums (if any). Typically, this can not exceed somewhere between 28% and 32% of your total monthly gross income.

The "back end" ratio includes all monthly debt obligations - including the monthly housing expense - and cannot exceed anywhere between 36% and 45% of your total monthly income.

If the monthly payments on the other debts are high, it could effectively reduce the total monthly housing payment. If they were low to begin with, and may have no impact.

The best thing to do is contact a mortgage lender or broker in your local market area and have him or her conduct an analysis of your total income and debt situation and to paly "what ifs" to maximize the house you want to buy.
0 votes Thank Flag Link Wed Mar 30, 2011
Many factors determine what you can qualify for regards to a home loan. Complete a loan application speak direct with mortgage broker. By lowering your debt YES IN MOST INSTANCES would increase the home loan you could qualify for .

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
972-699-9111
http://www.lynn911.com
0 votes Thank Flag Link Wed Mar 30, 2011
Thanks for your question about ways to improve your credit score. I suggest doing an internet search for some ideas and speaking with a credit specialist, then a mortgage banker. Be careful about the credit specialist, they have been known to scam people. Just get some information. Then talk to the banker and maybe ask the banker questions you may have had for the expert.
0 votes Thank Flag Link Wed Mar 30, 2011
Thanks for your question about ways to improve your credit score. I suggest doing an internet search for some ideas and speaking with a credit specialist, then a mortgage banker. Be careful about the credit specialist, they have been known to scam people. Just get some information. Then talk to the banker and maybe ask the banker questions you may have had for the expert.
0 votes Thank Flag Link Wed Mar 30, 2011
You would have to speak to a mortgage specialist for a more definite answer, but I believe that it depends on your payment history as much as repaying the debt in full that factors into your FICO score.
0 votes Thank Flag Link Wed Mar 30, 2011
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