Would I qualify for a mortgage? Information included.

[Anonymous]

Got my pre-approval.  The credit scores they show are as follows:

Experian:  690

TransUnion:  694

Equifax:  698

Thanks again for all the advice!  We are making an offer on the home that we are interested in today.  So, the journey begins!

[hopefulKT]

Congrats!

[mwmiller82]

How much was you approved for, if you don't mind me asking.

[Anonymous]

I was approved for 172,000.  That was the asking price for the house.  They accepted our offer of 165,000.  Although, just got a call from the realtor that the owners were contacted by a neighbor who has a relative interested in the home now.  Not sure what's going to happen.  They had verbally accepted our offer, but hadn't signed the contract.  Hopefully, the new offer will be lower and they will reject it.  Oh well, we will continue to look and hope for the best!

[BeBop]

If you don't mind me asking, is 54,500 your "base" income i.e (excluding overtime, holiday pay, bonuses?)
I'm trying to gauge home much I would get approved for, my credit score is a little lower than yours (-30)
INCLUDING overtime, bonus, holiday pay etc I make about 49000-50000 a yr
I've been on the job 2yrs and only have about 6k in my 401k

[webhopper]

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@BeBop wrote:
If you don't mind me asking, is 54,500 your "base" income i.e (excluding overtime, holiday pay, bonuses?)
I'm trying to gauge home much I would get approved for, my credit score is a little lower than yours (-30)
INCLUDING overtime, bonus, holiday pay etc I make about 49000-50000 a yr
I've been on the job 2yrs and only have about 6k in my 401k

---

I think everyone's situation is different, because people have different Debt to Income ratios.   You have what is called a Front End Ratio and a Back End Ratio:

Front End Ratio: Add up the total mortgage payment (principal and interest, escrow deposits for taxes, hazard insurance, mortgage insurance premium, homeowners' dues, etc.). Then, take that amount and divide it by the gross monthly income. The maximum ratio to qualify is 31%. See the following example:

	Total amount of new house payment:	$750
	Borrower's gross monthly income (including spouse, if married):	$2,850
	Divide total house payment by gross monthly income:	$750/$2,850
	Debt to income ratio:	26.32%

Back End Ratio Add up the total mortgage payment (principal and interest, escrow deposits for taxes, hazard insurance, mortgage insurance premium, homeowners' dues, etc.) and all recurring monthly revolving and installment debt (car loans, personal loans, student loans, credit cards, etc.). Then, take that amount and divide it by the gross monthly income. The maximum ratio to qualify is 43%. See the following example:

	Total amount of new house payment:	$750
	Total amount of monthly recurring debt:	$400
	Total amount of monthly debt:	$1,150
	Borrower's gross monthly income (including spouse, if married):	$2,850
	Divide total monthly debt by gross monthly income:	$1,150/$2,850
	Debt to income ratio:	40.35%

As long as your Front End Ratios and Back End Ratios are in line, then you should be fine.

General rule of thumb is that bonus income will be averaged over two years. Overtime income will usually not count or it may be averaged.  Best Advice would be to ask the Loan officer how they will calculate your income.