I was prequalified today, and given a loan value of 220k, and told the max payment I could take on would be `$1540.00. I'm confused a bit, because i was told a year ago that lenders qualify you for your estimated house payment rather than the loan amount. Now it seems as if I have a cap on my loan amount & a cap on my possible payment.
My mortgage guy is out of town until Thursday, and was hoping someone in this community had some experience in this. It would be very appreciated as its driving my wife crazy. She had expected to be able to have a bit higher home price range.
When I was given my preapproval amount, I was given both a purchase price and a monthly PITI amount. I was told that it was really the PITI (principal, interest, taxes, insurance) that mattered as this would actually be the monthly payment. You may be able to find a house that is more than $220k, but it has lower taxes. If you are close, you can always give the information to the lender to see if the property fits with your budget.
OK that makes sense and lines up with what the lender had told us last year. I appreciate your input. Thanks!