Mortgage Qualifier – Free, Accurate, One Click, Easy to use
Mortgage Calculater – Mortgage Qualifier
What' the difference? How does each work?
Simply, using this Mortgage Qualifier, enter your income, debts, credit score estimate, percent down, and county or city of property interest (and actual taxes if you already picked out a property). The computer, using approximate FannieMae and FHA guidelines, examines your entries and estimates a maximum affordable monthly payment. It also estimates how much mortgage and sale price that monthly amount will buy.
How is that different from a Mortgage Calculator? The Mortgage Calculator skips the qualifying part. You select a monthly payment amount and down payment percentage, and the calculator estimates how much mortgage and sale price it will buy.
How does qualifying work?
Suppose you are searching for an apartment to rent or house to buy. You begin with some idea of how much, on a monthly basis, you can afford. You know what your living expenses are. You may even write out a budget… groceries, debts, gas, insurance, utilities, tithing, entertainment, taxes. Subtract those “known” expenses and some for savings as well. How much is leftover each month? This is very close to how veterans are qualified for VA home loans.
FHA and FannieMae use the same general idea but instead construct “ratios” — percentages of monthly income that can be spent on housing, while also considering homebuyer “debtload”. If you run some examples using the Qualifier, you will see that homebuyers with better credit and /or more down are allowed by the computer system to increase the ratios that limit their housing payment.
As most renters know, apartment rents have increased dramatically over the past few years. In many areas it costs less, on a monthly basis, to own a home rather than rent that same home.