Dallas Home Loan standards

The home mortgage industry is constantly changing and varies in different parts of the country. But for Dallas in June 2014, here are the basics of getting a home loan.

These are the simple guidelines that lenders are following today.

Qualifying Ratios: How much can you afford ( or qualify for)?

• Debt (monthly credit obligations) to Income (monthly gross or net income) Ratios determine if the buyer can afford the home.

A General rule is 45% of your Gross (Employed Borrowers) and Net (Self employed Borrowers)Income can be used for house payment and all other monthly obligations. Someone making $10,000 per month could have $4,500 in total monthly expenses which would include the new house payment. There is some flexibility but the guidelines state 45 percent.

Basic Items needed for Loan Qualification (get these ready before you finalize a contract to purchase):

• Most recent two years filed Tax returns - all pages.
• Most recent W-2 for two years.
• Year end pay stub and most recent 30 day pay stubs
• Your bank statement showing you have the cash for down payment and expenses to close.

For more information from an actual mortgage officer, check my list of great professionals here.

When you know what you can afford, give me a call and I'll help you find it.