MHQ - Mortgage HeadQuarters

CHRISTMAS SPENDING & CREDIT CARDS Black Friday and Cyber Monday are just a week away and people’s Christmas spending will be in full gear. 21.5% of Americans will go into debt because of Christmas, but is that always the wise choice when buying a home is on your Wish List? MHQ Mortgage Headquarters is here to help you make your wish of owning a home a reality. Knowing how credit cards affect your ability to get a mortgage could help you with your spending habits this holiday season. 5 WAYS CREDIT CARD DEBT AFFECTS GETTING A MORTGAGE Five main factors related to your credit card debt are considered when submitting your mortgage loan application. Below are the ones we will review but it is not an inclusive list. It is always best to contact your mortgage loan professionals around Lake of the Ozarks at MHQ Headquarters .   Debt-to-income ratio . To make sure you can repay your loan, lenders calculate your debt-to-income (DTI) ratio by dividing your total monthly debt by your gros...

If you've ever brought up the subject of getting a loan for any type of major purchase, you've probably heard the phrase "how much do you qualify for?" or "we'll need to get you qualified for a loan". When it comes to your mortgage, qualification ratios may seem like something from your high school calculus class. It's actually not rocket science. The math is simple, and the concept is sound. Here's the simple breakdown of how qualification of loanability is considered. Debt to Income Ratio Income Ratio is your total monthly housing payment as a percentage of your gross monthly income. Your total housing payment consists of principal, interest, property taxes, hazard insurance, mortgage insurance (if applicable) and any condo/co-op or association fees. Debt Ratio is your total monthly housing payment plus any recurring monthly debts as a percentage of your gross monthly income. Other debts include all other payments such as cars, credit ...

Applying for a mortgage and buying a house is a major financial decision that can affect your bottom line for up to 30 years or more, so it is important to understand how much house you can actually afford. This week, we're taking a look at a few things you should consider when planning to buy a home at the Lake of the Ozarks to ensure you're comfortable with your home purchase. Consider Your DTI The first step in paving a smooth financial path for yourself is to add up your monthly income and expenses. Most mortgage lenders use the 28-41 rule to determine what you can afford and how much money they’re willing to lend you. The 28-41 rule states that your maximum household expenses shouldn’t exceed 28 percent of your gross monthly income. Your total debt, which includes everything from student loans to credit cards, should fall below 41 percent of your income. This number is your debt-to-income ratio, or DTI. However, in today’s new lending world, ratios have changed to ...