how can i find out how much i can borrow on a mortgage?

Question

i am renting at the moment and would like to buy, but don't know how to find out how much i will be allowed to borrow, i don't want to keep applying to different companys as i have been told this can affect my credit

Answer 1

A lender can tell you, they will check your income, and credit ratings ect, then they will be able to determine what they will loan to you.
You will have to check into their APRs, and if they charge points. They will also tell you what you will need to show them, bank account/s bills, check stubs....ect. Those ARMs are evil.

Answer 2

The old rules were 3 times your annual income, or 2 and a half times you and your partners annual income combined. You might find you can get a little more in these days of lower interest rates. I got 4 times my annual income when I bought.

They look into affordability too, so if you've got 10 credit cards up to the limit, they'll take into account the fact that you have to pay those each month, so the amount you can borrow would be less.

Go see the mortgage advisor in your local bank. They can give you a very good idea, and that's without actually having to apply.

Answer 3

You can get an idea without leaving your desk by visiting any real estate website and using the tools they have.

I would recommend Edinarealty.com and look under "Financial Tools". They have a free estimator of how much house you can afford, and it won't result in any hit on your credit.

If you have good credit, low debt load and are honest when you put in the figures they ask for, you'll find that it will be close to what a mortgage broker or bank can get for you...if you have bad credit, a high debt load or other factors, you'll want to talk to a mortgage broker or bank so they can get you a more precise answer.

Answer 4

Rather than going to each individual bank (which does eventually affect your credit rating), go to an estate agents. Most have independent mortgage advisers (and advertise this in the window). They will tell you what range of banks etc they cover (i.e. some only look at the major mortgage providers - Nationwide, Halifax etc, whereas some look at all n hundred). Try to find one that looks at as many as possible. They will consider what you want and explain the options. It is free, (they get their fee from the mortgage provider once they arrange something) and only involves one credit check (unless, obviously, you go to more than one adviser.
There are no obligations in any way, as far as I can make out.

Answer 5

Any mortgage lender will be happy to work up an estimate of how much you should qualify for. This won't affect your credit rating as it does not include a formal credit check.

Get a free copy of your credit report at http://www.annualcreditreport.com and pay the extra $5 or so for your FICO score. Print those out and bring them along with you so that they can give you the best estimate. When you check your own credit record it doest NOT affect your score.

Answer 6

Why don't you pick one reputable lender like Wells Fargo and get preapproved. Amongst different reputable lenders the numbers really won't vary that much. Anyway, in purchasing a home you should determine how much you can comfortably afford to pay each month towards a mortgage. (Base this off off what you currently pay to rent-can you afford more or would you like to pay less) This should be your key number. You can go to MSN money or somewehere and find a loan calculator. If you have good credit the lenders will prepprove you for much more than you are probably able to comfortably pay a month.

Answer 7

Get preapproved from an experienced Loan Officer, preferrably referred by someone you trust. Only have your 3 credit score report pulled once. You can use this same report if you are going to talk with another mortgage company to see what they have to say.

Answer 8

Contact a bank or other mortgage lender and get yourself 'pre-qualified'. They will tell you exactly what debt load you can afford to handle, which in turn, lets you know the maximum you'll be able to spend on a house.

Answer 9

go to a broker who will shop for your best deal, its all based on your income,as well as your credit history, also the price of the property. I have a nice Lady that has helped me and have now found a lady that deals with high street banks too...your right it can affect your credit.but once you have done it you should feel better.

Answer 10

Go to your bank. Talk to a mortgage broker. They can really get detailed about what you can afford or can't. You can also get a credit report from them so you can see where your money is going. It's pretty helpful.

Good luck!