Quick rule of thumb income times 33% divide that number by the interest rate lets say .04 (4%) that means in your case you could qualify for a loan upto 1,800,000 I'm not saying you should buy beyond your comfort level but you could by more home if you chose. Also I assume you will be putting down a downpayment as banks are requiring that these days :)
Swell, Iâ€™ll just give you a couple of recommendations.
First, try not to incur in any big expense like buying furniture, a new car, etc., before you get your mortgage loan. That would mark a big jump in your credit history that raises a flag to lenders. Lenders like to see some debt in your credit history to gauge how good a payer (responsible) you are. So hopefully you have some past debt to show them you know how to handle your financials.
Second, start putting together all the documentation to backup your good credit history from the last two years at least. Income sources, paycheck stubs, income tax statements, bank statements, credit card statements, etc. etc. etc. Lots of paper work will be asked from lenders to confirm such a good scoring is true. They always request lots of stuff in all cases. Thatâ€™s their way to get to know you.
Lastly, get the best possible advice on all the different kinds of loans you can get and how you would benefit most from each other. Aside from the fix/variable rates, there are a wide range of options that lenders can offer you depending of factors like how much savings money you have for down payment, etc. Not to forget closing costs, moving costs and the like.
In the end, nowadays we are going through one of the best times to buy a home. But you already know that, so go ahead and reap the benefits of your good judgment.
Luck on your home purchase,
Simply stated, you should plan on qualifying for the best available rates. We would encourage you and other borrowers to shop around and seek out the best programs and opportunities because there will be variations. Getting a pre-approval will prepare you to be able to make a quick decision should the perfect property present itself.
I believe that you are in good shape, but we'll have a better idea once we cross that bridge. I am very familiar with Boston, having graduated with BS in Business from Boston University and her suburbs.
I look forward to hearing from you.
Coldwell Banker Residential Brokerage
Agent & Relocation Specialist
Please let me know when you are ready, and I will get in touch with some brokers and bankers.
Meanwhile, please feel free to check our site for what the market is like today. Link below.
A good mortgage broker can advise you on that.
If you write to me privately I will be glad to refer you to a reputable lender who will not only give you a very good rate but also help you bring up your score. It sounds like you are in good financial shape and have a great plan. Needless to say, I would also be happy to help you find your new home. Good luck to you.
Ellen G. Friedman, Keller Williams Realty, email@example.com