What is Needed to Qualify for a Mortgage Loan
This is Todd Uzzell I’m a licensed mortgage loan officer. And today we’re gonna talk about how to qualify for a home loan. Uh, the truth is it’s not that difficult. I mean, we look at a few things. We look at credit score, income debts. Those are your main pieces. And when we talk about debts, we’re talking about like stuff on your credit report, car payments, student loans, credit cards could be child support.
Anything that we can see on your credit report, or that comes out on a regular, that isn’t like a phone bill or, you know, something like that. So, you know, first steps is ideally complete an application. Get your credit pulled. I mean, if you don’t, if you don’t know what’s going on with your credit, it’s hard to know what to fix.
If it doesn’t need fixing, then you’re ahead of the game. , then again, we look at income. So with income we can use for simple math, we can use about 50% of your gross monthly. So, if you make $60,000 a year, then we’re going to break that down by the month. And we’re going to say you make 5,000 bucks a month.
And of that 5,000, we can use 2,500 of it to take care of whatever debts you have, like car payments, student loans, credit cards, monthly payments, and your new house. So in this scenario, if you have a $2,500 a month, max, based on your $60,000 annual income, And so you got a $500 car payment. So we’d subtract the 500 from the 2,500, that leaves 2000.
And from the 2000, that’s what we could use for your potential home payment. Right now, 2000 bucks on a minimum down payment would be about $300,000 house. That’s in Arizona. It could vary other places, but our property taxes are generally pretty low. That’s assuming around it, 3.75 to 4% interest rate.
So that’s the basics of qualifying for a home loan. , there are some dead stops if you will like bankruptcy in the last two years, , some foreclosure rules, but for the most part, , credit income, that’s on your credit report. Those are the big pieces and I’ll make some other videos that dig into different types of loans and different types of borrowers, if you will. That’s all I have for now. If you liked this video, you can like the page or, , leave a comment, and if you want to get in touch, have a conversation, I’ll leave my contact information in the description.