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Home Purchase Loans
Le Credit and Le Debt
Lenders want to get paid back. This is not unreasonable, in fact most everyone wants to get paid back on the money that they lend out – I believe that this is one of the normal laws in our universe and that most people try to live by if they can. What the lenders are looking for are mortgage and other debt expenses that somewhere below 38% of your Gross Income (before taxes are taken out) in Normal Land; in Abby – Normal land it is probably more. Of course, the percentage that lenders look at will be determined by whether you live in a Normal part of America or an Abby – Normal part of the good old U.S.
Different areas that the lenders look into:
- Car payments
- College loans
- Credit card debt
- Other loans
The lenders do not want you to be overburdened and take on the risk of you defaulting on your mortgage. Be conscious of this while speaking to a mortgage professional.
Normal part of our awesome country
- Pretax income of $5,000 x 38% = $1,900
- Pretax income of $7,500 x 38% = $2,850
- Pretax income of $10,000 x 38% = $3,800
The Abby – normal part of our awesome country
- Pretax income of $5,000 x 50% = $2,500
- Pretax income of $7,500 x 50% = $3,750
- Pretax income of $10,000 x 50% = $5,000
