By answering a few simple questions, we will calculate your buying power, based on standard lender guidelines.

You may also elect to get pre-approved for a loan which requires verification of your income, credit, assets and liabilities.  It is recommended that you get pre-approved before you start looking for your new house so you: 

1.     Look for properties within your range

2.     You will be in a better position when negotiating with the seller because the seller knows your loan is already approved

3.     Close your loan quicker  

LTV and Debt-to-Income Ratios
LTV or Loan-To-Value ratio is the maximum amount of exposure that a lender is willing to accept in financing your purchase. Lenders are usually prepared to lend a higher percentage of the value, even up to 100%, to creditworthy borrowers. Another consideration in approving the maximum amount of loan for a particular borrower is the ratio of monthly debt payments (such as auto and personal loans) to income. Rule of thumb states that your monthly mortgage payments should not exceed 1/3 of your gross monthly income. Therefore, borrowers with high debt-to-income ratio need to pay a higher down payment in order to qualify for a lower LTV ratio.

FICO Credit Score
FICO Credit Scores are widely used by almost all types of lenders in their credit decision. It is a quantified measure of creditworthiness of an individual, which is derived from mathematical models developed by Fair Isaac and Company. FICO scores reflect credit risk of the individual in comparison with that of the general population. It is based on a number of factors including past payment history, total amount of borrowing, length of credit history, search for new credit (credit inquiries), and type of credit established. 

Self Employed Borrowers & No Income Verification Loans
Self-employed individuals often find that there are greater hurdles to borrowing for them than an hourly or salaried person. For many conventional lenders the problem with lending to the self-employed is the ability to document the applicant's income. Applicants with hourly or salaried jobs can provide lenders with pay stubs, and lenders can verify the information through their employer. In the absence of such verifiable employment records, lenders rely on income tax returns, which they typically require for 2 years. An alternative for a self-employed borrower who cannot demonstrate two years of sufficient income from their tax returns would be a limited documentation or reduced documentation loan also known as a stated loan.

Source of Down Payment
Lenders expect borrowers to come up with sufficient cash for the down payment and other fees payable by the borrower at the time of funding the loan. It is generally expected that these funds be borrower's own funds, although a borrower may receive non-returnable gifts towards down payment and other loan fees.