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Old 09-15-2009, 11:43 AM   #21
6th Gear Member
Join Date: Feb 2009
Location: Canada
Posts: 1,405
Originally Posted by daytona View Post
Here is my profile..looks like a easy approval for a loan?

Im going to my branch to get a approved loan for a $248,000 condo.

Im going to put %20 down,my income is $43,000 a year,credit rating is 815 as to date,got a line of credit for $30,000 (balance is 0),got a Visa card limit is $15,000 (balance is 0).Self employed and unmarried,looking to get a 25 year mortgage and trying to get a 3 year closed mortgage.Does this look like a good profile.

Being a real estate agent I can share a bit...

For staters anything less than 20% down will likely result in a high ratio insurance rate on the loan, aim for 25%. The insurance rate may be up to 3% or less of the loan amount.

Secondly based on your gross annual of $43k the bank will do the following..

They will take that $43k and lend up to 32% of the gross, so in this case $13,760 per annum. From that $13,760 or $1,146 per month they will begin looking at expenses such as car loan(s), credit card debt, carrying costs such as condo fee, heat etc and subtract from that $1,146. The amount left over will be that actual amount you qualify for to cover the mortgage payment ( interest and principle ). So that $1,146 may drop drastically, not knowing all your info can't say.

So, say you bought a condo for $248k, had 20% down, left with a mortgage of $198k, at a rate of 4% and fixed for 5 years you would ROUGHLY be looking at $850-$900+ per month plus condo fee's/property tax, insurance, heat etc etc etc. If it all falls around $1,146 a month youre good to go.

There may be other factors I am unaware of but hope this helps. Personally looks like it will be too tight, not by much but tight enough that I may recommend aiming closer to $200k+, don't want to end up in a situation where all the bills are JUST paid, that isn't fun.

Last edited by Blackedout95; 09-15-2009 at 11:47 AM.
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