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The second question that most Realtors and mortgage brokers will be asked is HOW MUCH INCOME DO I NEED? In other words, how much income do I need to qualify for the mortgage that I want?

This question is easily answered when the applicant provides the following information:

1. The Purchase Price of the property.
2. The Down Payment.
3. Total Monthly Debt Payment (revolving credit debt)
   Please determine, where applicable, the Total Monthly Payment for the following: Automobile(s)-Loan(s)/Lease(s), Personal Loans, Credit Lines, Leases, Credit Cards, Department Stores, Appliance Stores, Furniture Stores, Gas Credit Cards, Student Loans and Support Payments. DO NOT include monthly Utility Costs, Rent or Mortgage Payments, Insurance and Cable/Satellite Costs.

Your Realtor or mortgage broker will provide you with the current interest rates (STATED ANNUAL RATES), based on the TERM that you select,will assist you with deciding how long you think it will take to pay off your mortgage (AMORTIZATION) and will provide you with a good estimate for annual property taxes, annual heating costs and monthly condo fees, if applicable, for the type of property that you are considering.

EXAMPLE:

A couple are considering submitting a $ 110,000.00 offer on a single family residence. They have a $ 10,000.00 Down Payment and their combined Total Monthly Debt Payment (revolving credit debt) is $ 467.00.

Their Realtor has provided the following information about the costs associated with the property under consideration. Annual property taxes $ 1,625.00; heat $ 1,350.00.

Their Realtor has recommended an Amortization of 25 years, a 5 year Term at an interest rate (Stated Annual Rate) of 4.65%.

Answers: Based on the above data this couple will have to have a combined Gross Annual Income
of $ 38,850.57.

© 2008 VERICO Mortgage Network London