I want to buy a Home, how much loan am I eligible for?

I%26#039;m 33yrs old live in NJ, first time buyer. Earn $40,000 income, credit rating of 734, no credit card debt, car is paid off, only paying school loan of $41,000 my payment is about $320. *I also have $10,000 for a down payment. I know i can apply for a mortage and get an answer but i am not ready to start talking to people yet. Wondering if there is a recipe to figure out about how much I will have to work with!

I want to buy a Home, how much loan am I eligible for?

House pmt. P%26amp;I taxes, Ins, MIP 1033.00 @ month, or a mortgage a 6.5 % = $140,000.00 mtg. or a sales price of $150,000.00 w/ $10,000.00 dn. The equation is the following G.M.I. = $3,333.00 a month X 31% = total mo. housing expense , $3,333.00 X 43% = $1,433.00 total debt including h.p. Based on $40,000.00 yearly income. f y i , $140,000.00 X 5.99 (6.5%) = $838.60, plus taxes and insurance. Hope this helps, Good Luck!

I want to buy a Home, how much loan am I eligible for?

Your current debts are about 10% of your income and they want you under 35% max .

So , you should quality for a loan with payments of about $830 per month .

That would be principal , interest , property taxes , home insurance AND

Because you do not have 20% down , PMI .

I do not know what rate you would get on a 30 year fixed tho .

Ask 3 lenders for prequal letters .

They are free and only they can tell you the real numbers .

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I want to buy a Home, how much loan am I eligible for?

Bankrate.com has a wonderful loan calculator. It%26#039;ll tell you how much you qualify for based on your income and today%26#039;s interest rates. You can also say what monthly payment you want to stay at, and it will tell you what price range to look in.

That%26#039;s actually what I%26#039;d do - find a monthly payment that%26#039;s comfortable to me %26amp; let that determine how much house to buy. They use 28 and 36% of income as the general rule, BUT if I used those numbers my monthly housing payment would be TWICE what it is now. I personally would prefer to have that money in my pocket to use for vacations, home improvements, etc.

Good luck!