Home loan

[nightrythm]

Can anyone explain this stuff to me in an easy way? I've read everything and I'm still confused.

Why can't I just go in and say, I can afford to spend $x a month on my home (mortgage/insurance/taxes etc.) and I have $x to put down, how much money can I get?

Math is hard and I wanna go shopping, but I can't without doing the math first. *grump*

Comments

[stacymckenna.livejournal.com]

well, there are four big numbers associated with calculating loans:
down payment
monthly payment
interest rate
loan amount

You've only spec'd two so far. The banks, obviously, have control over the interest rate and from that you can calculate loan total. For starters, assume 6% (it's higher than what I was recently quoted for a refi on a 30yr fixed, but it'll give you a conservative estimate which means some breathing room).

This calculator may come close to what you're looking for. Remember, even if YOU think you can spend 45% of your income every month on mortgage/tax/ins, the banks won't let you. You will be capped by income ratios (we were, darn it all - that spare $10K woulda been handy).
http://www.mortgage-calc.com/mortgage/howmuchborrow.html

[nakeygirl.livejournal.com]

I found the mortgage calculator frustrating as well. What it really came down to was to talk to the bank. Then, they will ask you for a bunch of paperwork- bank statements, paycheck stubs, tax forms etc. the tell you how much they'll lend you based on down payment and what they decide you can afford.

[deliriumx.livejournal.com]

I picked up a couple library books to help figure some of this stuff out. And once I had a good grasp of the terminology I attended a seminar offered by my credit union where I learned useful things like that they will base financing off the lower of the two credit scores between you and your spouse. And as I understand it, the seller pays for the buying agent, so there is no reason not to get one.. of course you don't want the buying & selling agent to be the same person.. bit o' conflict of interest there.
Good luck!

[digital-rider.livejournal.com]

You could try contacting mortgaged on LJ. I've known him since 93 and he can help explain things. As his LJ name says, yes he works in the biz. He may or may not be able to do a loan for you.

Regardless, if the mortgage broker you work with can't explain things well (BEFORE THEY PULL CREDIT), move on.

[alouicious.livejournal.com]

er...that is pretty much what i did and the realtor if i remember correctly worked it out with the broker but that was in 2002 so things may be extremely different right now.