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OT Are mortgage affordability calculators correct?


marisakay
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I know this is off credit subject but we are planning on buying a house in the near future and I was curious if the online calculators are correct on what a lender will loan you? I have heard that they loan you way more then you can afford. So are these calculators a good estimate of what they will approve you for? it seems like many i know did them and said they could afford like for example a 50,000 dollar house but they got preapproved for like 110,000...any ideas on this? thanks!!!

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From what I've seen, most of the mortgage affordability calculators are CONSERVATIVE estimates. However, alot of mortgage lenders are currently pretty aggressive. Additionally, there are numerous programs that are stated income only. My good friend is a mortgage broker and she says one of her most popular programs is a stated income program; however you need a FICO of at least 680 to qualify, and the interest is 6.25%.

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<blockquote>Originally posted by marisakay

whats a stated income program? we are going to apply only w DH since I dont work and his credit is good..his FICO is 705. i have never heard of it before ...thanks! and I am dumb, does conservative estimate mean a lower estimate?

</blockquote>

A stated income mortgage program is one in which you don't have to provide income taxes and/or W-2. Usually, you have alot of equity in your home. And, you are going to have to provide checking account sttatements for 1-2 yrs.

Are you refing???

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