Qualifying for a home loan

I just wanted to go over what an Mortgage underwriter looks for when qualifying someone for a home loan. They first look at a person's income compared to their debt and proposed housing payment. They want a person's housing payment to by 31% or less of their gross income. They want the housing payment plus debt payments to be 41% of the gross income or less. If a person grosses 3000.0 per month, they would want the maximum housing payment to be $930.0 per month or less.The $930.0 per month includes the monthly real estate taxes and homeowners insurance. They would want the housing payment plus other monthly debt to be $1230.0 per month or less. That means they want either car loans and or credit card payments to be $300.0 per month or less. You can use the mortgage calculator at the bottom of the page to see how much of a loan amount would equal the mortgage payment. In this example the loan amount that has a total payment of $930.0 per month is $120,000.0. In most areas that can buy you a nice starter home which is less than renting the same house. A mortgage underwriter would also look at your credit report to make sure that you are paying your bills on time the last year. They now want a credit score of 620 or above. They also like to see at least three accounts or more on your credit report. If you dont have that many accounts on your credit report, you should add another credit account. You could also ask your utility company to report your account to the credit agencys. If your credit score is not high enough, I will be giving tips on how to remove bad credit items. They do look at the property that the loan will be attached to ,but basically I have just described what mortgage lenders look for when qualifying a person for a home loan.