If you want to buy a home, you must determine how much you can afford. You’ll have no problem if you have cash in the bank which you can use anytime. However, most people in the US, particularly in Utah are unfortunately not in such stable financial condition-they need the services of mortgage lenders in Utah such as the Altius Mortgage Group.
The good news is that you need not have impeccably good credit to apply for loans. There are many types of mortgage loans to suit your needs. And for your convenience, you can try the lender’s pre-qualification calculator for the amount of loan you can borrow. This can be used by any interested home buyer.
All you have to do is supply the information the mortgage lender needs to calculate the amount of loan it can offer you. This includes your gross monthly income and your monthly debt payments for loans that won’t be paid off in ten months. Next, you have to indicate the loan terms you desire such as the interest rate and the number of years you prefer. Finally, you must state your yearly property tax and property insurance payments, or the lender can be the one to make an estimate for you.
Based on the above details, you can safely say that the mortgage lender will offer you only a loan you can afford to pay. You can then buy a house from the money you have borrowed. This is a great service especially for a first time home buyer in Utah because it makes the buying process easier.
Mortgage lenders usually just use a simple debt-to-income ratio as guideline in determining the maximum loan amount to give you. It is the percentage of the borrower’s gross monthly income, before taxes, that is used to pay monthly debts. The common guideline is 33/38 which means that a borrower’s housing costs consume thirty three percent of the monthly income. If you add the borrower’s monthly consumer debts to the housing costs, it should not amount to more than thirty eight percent of his monthly income to enable him to meet his obligations.
However, these are just guidelines and can be adjusted according to the circumstances. If you pay a smaller down payment, the guidelines may become more rigid. The terms of your loans will actually depend on your capability to pay your mortgage obligations.