Debt to Income Ratios

You need to review your personal finances prior to applying for a home loan. If you have a good handle on how much your earn vs. how much you owe, you will have a better understanding of how much a lender will allow you to borrow.

Income:

What is your gross monthly income? 

Figure your average income for the past 2 years. Locate your tax returns for the past 2 years. In addition to your earned sources of income, you may use unearned sources of income such as alimony or lottery payoffs. And if you own income-producing assets such as real estate or stocks, the income from those can be estimated and used in this calculation. If you have questions about your specific situation, any good loan officer can review your documents.

Debt:

Include all of your monthly debt obligations; credit cards, installment loans, car loans, personal debts or any other ongoing monthly obligation like alimony or child support.  

Mortgage Lenders do not want you to take out a loan that will overload your ability to repay everybody you owe. 

Formulation: 

A common average guideline for debt-to-income ratios is 33/38. A borrower's housing costs take up 33% of their monthly income. Once you add your monthly consumer debt, it should take no more than 38% of their monthly income to meet those obligations.

A lender takes into account many factors that reflect the financial condition of a home buyer. many lenders have different debt to income requirements.  Being prepared by knowing where your income and expenses stand will simplify the application process for you and your lender.

What are the basic eligibility requirements for FHA financing?

FHA insures mortgages made by approved lenders to individuals and non-profit and government agencies that are approved to participate in HUD's programs; HUD does not loan money to homebuyers. 

Generally, to be eligible for an FHA loan, you must have a valid social security number and have lawful residency in the United States and be of a legal age to sign on a mortgage in your state. Lenders will verify income, assets, liabilities, and credit history for all parties on the loan. 

FHA's mortgage programs do not typically have maximum income limits for qualifying, although you must have sufficient income to qualify for the mortgage payment and other debts. 

Income limits may be present when qualifying for down payment assistance or other secondary financing programs (including those funded by HUD) that may be used in conjunction with an FHA loan. 

Using FHA guidelines, lenders will make a credit determination based on the merits of each case. To find out if you qualify, and how much you can borrow based on your income and debts, you should contact a FHA approved lender.

(source: U.S. Dept of Housing and Urban Development)

Can I apply for a loan before I find a property to purchase?

Yes!  Applying for a mortgage loan before you find a home may be the best thing you could do! 
If you apply for your mortgage now, we'll issue a pre-approval subject to you finding the perfect home. You can use the pre-approval letter to assure real estate brokers and sellers that you are a qualified buyer. Having a pre-approval for a mortgage may give more weight to any offer to purchase that you make.
When you find the perfect home, you'll simply call your Loan Officer to complete your application. You'll have an opportunity to lock in our great rates and fees then and we'll complete the processing of your request.

How is Pulaski Bank different from other lenders?

There are hundreds of mortgage providers in the St. Louis and Kansas City regions, but Pulaski Bank continues to be ranked among the top. 

Why? 

 First and foremost, SERVICE. Providing the best customer service gives us an edge on the competition. Our repeat customer referrals show that we excel in every aspect of customer service. Pulaski Loan Officers are the best mortgage banking professionals in their market, and they have the tools necessary to help you make decisions. There's no corporate red tape to prevent you from getting an answer when you need it, TODAY!

 Pulaski offers financing options to fit a wide variety of needs. We work hard to find the option that best fits your circumstances. Our loans are processed and approved locally, not out-of-town. We are able to lend our own funds, so we do not rely on others to control your transaction. We do not depend on out-of-town firms or offices to prepare documents or wire money to the closing. If there is a last minute change in your closing figures, for example, we merely reprint the documents. 

Many lenders must delay the closing for hours, or even days. Ask your Real Estate Professional how many other lenders make all decisions and draw documents locally, and then personally bring the funds to closing. Your real estate professional can probably share with you the importance of these service differences at Pulaski Bank. 

Other lenders try hard, but never seem to achieve the quick, efficient service that we offer. 

Choosing a mortgage lender

Buying a new home or refinancing the mortgage on an existing home is a big step.  You can take some of the stress out of getting a mortgage by choosing the right mortgage lender for your specific situation. 


While who has the best interest rate is certainly a consideration, there are many other factors to look at when you choose a mortgage broker. 


If you have friends that have recently bought a home or refinanced, ask them if they were happy with their mortgage lender, and for a recommendation. If you're selling your home, your real estate agent may have a recommendation for a lender they have worked with before. 


Chances are, you'll get several recommendations.  Check them all out before you make a decision.