Get Prequalified
Let us find the best mortgage professional for you! We have a team of preferred lenders that provide consistant service to our clients, so you do not need to worry about finding the right mortgage professional to use. Please complete the form below to prequalify for a home loan.
Here is some basic information that helps you to do the simple calculation yourself:- Most FHA/Conventional lenders have a minimum credit score requirement of 620. Check your credit rating before considering for home purchase.
- Besides the credit score requirement, the most critical factor that determines qualification on a loan is the debt to income ratio. Most FHA and conventional lenders will allow a maximum of 41% (ratio of total monthly debt payments including mortgage and other debt payments vs. monthly gross income). Click here for a detailed explanation on the FHA website.
- Click here for the simple Total Home Payment vs. Gross Income Table as your guideline.
Example: Say your monthly gross income is $8,000. Then, your total debt obligation cannot exceed 41% of your gross income, which is $3,280. Assume you have a total of $400 a month from existing debt, $250 from auto loan and $150 from credit card minimum payment. Then, you are qualified for a total $2,880 home payment. The total home payment must include mortgage principle and interest payment, property tax, property insurance (or Homeowners Association Dues for condos and townhomes), and any mortgage insurance for low down payment loans. Given a nominal case, with today's low interest rate, the $2,880 total home payment means a $400,000 loan. This means with low down payment of 3.5% to 5%, you can qualify for about $410,000-$430,000 of home price. With 20% down payment, then with the same income, you can qualify for about $480,000-$500,000 of home price.
If you like us to look at your specific case, we are more than happy to go over the calculation upon your request by filling out the following form. Please note "Current monthly financial obligations (minimum $ due)" should only include debt payments such as credit card payments, auto loan, student loan, etc. You DO NOT need to include personal expenses such as food, utilities, gasoline bill, and entertainment expense. Your "Total liquid asset" also determines how much home you can buy with your down payment. Use your total liquid asset number and divide it by 0.035 and that gives you the maximum price range of a home you can purchase (subject to your loan qualification as well). If you are possibly getting down payment gift from family, then you can also count that in the Total liquid asset and specify where the gift is coming from.
