Mortgage related.. Are the mortage

questionnaires to estimate the mortgage amount you qualify accurate? where you put in gross salary and mortgage % rate and monthly expenses?

eta: thank you for answering..worried future homeowner?!

Message edited 11/2/2007 2:58:59 PM.

Re: Mortgage related.. Are the mortage

We bought our house about 2 years ago and I know some things have changed in the mortgage industry because of the high foreclosure rate - but we found that the banks all approved us for more than we felt comfortable spending. Your debt ratio takes into account loans and revolving debt, but not utilities, maintenance, child care - so your outgoing may be higher than what they are basing the figure on.

I'd determine how much you feel comfortable payingmonthy and go with that, rahter than what the bank tells you you can afford.

Re: Mortgage related.. Are the mortage

I only used them as a guide. For us, it told us much less than what we are able to afford. The banks approved us for much more. We bought a house that was about $75,000 under what we wanted to spend and we are comfortable with the payments combined with our other expenses.

Re: Mortgage related.. Are the mortage

we were told that we could afford much more than we really could. In reality we estimated aboout 30% less.

Re: Mortgage related.. Are the mortage

Oh I didn't find those to be accurate at all...It was better to go and get prequalified and sit down and talk with someone. As others have said you tell them your debt to income ratio including car payments, CC and student loans and then your gross salary that was much more helpful. When I used the ones on the computer we could only afford a $200,000 dollar house so I definetely wasn't using it right or something. I found those too confusing

Re: Mortgage related.. Are the mortage