Before most buyers start their West Knoxville home search, a majority of home buyers wonder the same thing: how much home can I afford? Obviously, this is a very important question to have answered by a loan officer prior to starting your West Knoxville home search. Here are a few things that loan officers take into account to determine how much home you can afford.
One large determination in how much home you can afford is based on your credit score. You credit score shows a lender that you have a solid payment history, can responsibly use debt, and shows your level of debt. Depending on your credit score, this can have a determination of what types of loans you can qualify for. A very low credit score can put you in the range which could make it difficult to buy a West Knoxville home for sale.
Obviously, income is also a large part of determining how much West Knoxville home you can afford. Lenders want to see that your income is stable and that you can afford to make payments. If your income is dependent on commissions or bonuses, you may be required to submit two years or more of income.
One other large consideration in determining how much West Knoxville home you can afford is your debt-to-income ration. They will want to see that with a new mortgage payment you won’t be too financially stressed to make payments. Your debt-to-income ratios would include your existing monthly debts like credit card payments, car loan, and student loans plus what the cost of a mortgage would be. Too much existing debt can hurt how much West Knoxville home you can afford.
For any home buyer, talking to a mortgage loan officer is a critical part of the home buying process. Knowing how much home you can afford makes the process much easier and stressful. It also makes you a more competitive home buyser.
Are you interested in buying a West Knoxville home for sale? If so, please do not hesitate to let us know. Rick can be contacted at 865-696-9002 or via email at [email protected]. Kati can be contacted at 865-696-1888 or via email at [email protected] Also, be sure to check out our West Knoxville home search page to see what homes are for sale in the area.