Approval Estimate - First Time Home buyer

[SRI2004]

Hi! I'm wanting to see if someone can give me an estimate of how much I will be approved for a mortgage. I'm a first time home buyer, single female. Here are the other details:

1. Credit: My Experian score is 753. I don’t have any derogatory marks or late payments. 2% credit utilization.
2. Income.  I estimate my gross will be about $63k this year.
3. Source of income.  My income comes from employment. It includes hourly wages, a lot of overtime ($12k last year), and an annual bonus around $2k-3k.
4. Monthly debt payments.  I have one credit card that I pay off every month. Minimum payment is $30 though. No car payment  or student loans.
5. Employment W2 employee. On the job for 6 years.
6. Assets/Reserves.  I have $18k in savings and $1k in checking. $12k in 401k. $4k currently in stocks. My car is paid off and is valued at about $4500.
7. Location.  In or around the 75067 and 75056 zip codes.
8. Property.  Single family or townhome
9. Occupancy.  Primary residence
10. Transaction Type.  Purchase

Thanks!!

[myjourney]

Welcome to the forum 

Here's a great tool to give you a rough estimate 

http://www.bankrate.com/calculators/mortgages/new-house-calculator.aspx

[DallasLoanGuy]

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@SRI2004 wrote:

Hi! I'm wanting to see if someone can give me an estimate of how much I will be approved for a mortgage. I'm a first time home buyer, single female. Here are the other details:

1. Credit: My Experian score is 753. I don’t have any derogatory marks or late payments. 2% credit utilization.
2. Income.  I estimate my gross will be about $63k this year.
3. Source of income.  My income comes from employment. It includes hourly wages, a lot of overtime ($12k last year) how much the yr before? , and an annual bonus around $2k-3k. did you get one the yr before?
4. Monthly debt payments.  I have one credit card that I pay off every month. Minimum payment is $30 though. No car payment  or student loans.
5. Employment W2 employee. On the job for 6 years.
6. Assets/Reserves.  I have $18k in savings and $1k in checking. $12k in 401k. $4k currently in stocks. My car is paid off and is valued at about $4500.
7. Location.  In or around the 75067 and 75056 zip codes.
8. Property.  Single family or townhome
9. Occupancy.  Primary residence
10. Transaction Type.  Purchase

Thanks!!

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[SRI2004]

I made $8k in OT the year before. (My OT rate was $25.23/hr then and now it's $40.38/hr). 2013 was the first year to be eligible for the bonus, but I will get it every year from now on.

[Travis-84]

I didn't do the math, but you will probably be approved somewhere in the low 300k range.  I filled out 3 applications, and I was floored by how much they approved me for.  I looked at the amounts and thought "I can't afford that".  So the biggest question would be how much can you afford? 

A general rule of thumb is to find a mortgage expense of 28% or less of your gross monthly income.  This includes Principal, Interest, Property Tax, and Insurance.  With your low debt, and good credit, If you find a house, and its in the price range you can reasonably afford, I think you will get approved.  

[MaddMatter70]

Is there any merit to the old adage 2.5 x your salary?  Or is that not really something banks look at and just go on dti ratios?