I just wanted to go over what an mortgage underwriter looks for when qualifying someone for a home loan. They first look at a person’s income compared to their debt and proposed housing payment. They want a person’s housing payment to be 31% or less of their gross income. They want the housing payment plus debt payments to be 41% of the gross income or less. If a person grosses 3000.0 per month, they would want the maximum housing payment to be $930.00 per month or less. The $930.00 per month includes the monthly real estate taxes and homeowners insurance. They would want the housing payment plus other monthly debt to be $1230.00 per month or less. That means they want either car loans and or credit card payments to be $300.00 per month or less. You can use the mortgage calculator on the site to see what loan amount corresponds to the house payment. An underwriter would also look at your credit report to make sure that you are paying your bills on time. They like to see a mid credit score of 620 or above for FHA loans. They also like to see three accounts or more on your credit report. If you dont have three accounts on your credit report, you can ask your utility company to report your payment history to your credit profile. The underwriter will finally look at the condition of the property to make sure that it is safe and in a liveable condtion.
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