Information On Income To Debt Ratio For Tooele UT
Financial information plays a key role in mortgage pre-approvals. All finance companies review your assets, earnings, credit and debts. These determine whether you can obtain a mortgage and for what amount. The following is information on income to debt ratio for Tooele UT loan pre-approvals
Mortgage companies will consider your gross monthly income. This includes only items that can be documented. Salaries are the most common form of income. Lenders will require paperwork (such as tax forms) for the last 2 years, giving them a picture of stability. They may ask for explanations for any unusual items, such as changes in salaries or inconsistent figures. Other sources of income may include alimony, investment properties, and stocks. Anything that you wish to report as income must be verifiable. A history of earnings and likelihood of future earnings is obviously helpful. The documentation criteria can vary among companies and certain exceptions may also apply. It is important to inform your loan consultant about all possible income sources to know what does or does not qualify.
Debt describes all monthly obligations such as charge cards and loans. The exact monthly payments on loans and other structured debt are used. For revolving debt like credit cards, minimum monthly payments are used in the calculations. These amounts are typically available in your credit report. Some companies may be willing to exclude debts with less than a year left or that you can verify someone else is responsible for. Payment figures are added up to determine specific monthly debt.
Information On Income To Debt Ratio For Tooele UT Loan Pre-approvals
Lenders compare the total income to debt to come up with the income to debt ratio, which must remain within a certain amount. Furthermore, mortgage payments plus your monthly debt must also not exceed a certain percentage for loan approval. The particular percentage can vary for each lender and from program to program.
For example, a lender may limit your total mortgage payment (principal, interest, taxes, and hazard insurance) to remain under 28 percent of your monthly income. They may also not allow all debt to exceed 40 percent of monthly income. Based on these sample figures, a borrower making 60,000 per year (5,000 monthly) would be allowed up to a 1,400 per month mortgage payment and 2,000 per month in combined debt. Keep in mind that this is merely an example and considers only the income versus debt part of the financial analysis that will be performed. There are many other factors, such as credit history and loan program requirements. It is important to consult with a local lender for full details on income to debt ratio for Tooele UT loan pre-approvals specific to your personal situation.
For a list of lenders in the Tooele area that we know can get the job done, give Berna a call @ 435-840-5029
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