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Old 04-12-2011, 08:56 PM
KellyCO KellyCO is offline
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Default Assessing Whether You'll Qualify

Hello~

I am getting ready to go through a mortgage assumption and was wondering if there were any benchmarks I could measure myself against to see if I will qualify? I know the bank is asking for W2s, pay stubs, etc. but how can I look at those docs myself and be able to gauge if I will qualify?

Thank you!
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Old 04-27-2011, 04:16 PM
debt guru debt guru is offline
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Default Re: Assessing Whether You'll Qualify

debt to income ratio shuold be about 45% max
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Old 06-16-2011, 02:58 PM
HammerinHank HammerinHank is offline
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Default Re: Assessing Whether You'll Qualify

What type of mortgage are you assuming? Assumable mortgages are not necessarily assumable by anyone. If you do meet the basic criteria to assume the loan, qualifiying is no different then qualifying for a traditional mortgage used to purchase a property or refinance a property. Credit score requirement is the same. Income requirement is the same. Housing ratio/Front End ratio needs to be roughly 30% or less (monthly PITI Payment {That's Principal, Interest, Taxes, Insurance}/monthly gross income). So, if mortgage payment is $1,000 a month including escrow, monthly gross income needs to be at least $3,333 ($1,000/$3,333=30%). Debt Ratio/Back End Ratio (monthly PITI Payment + other debt/monthly gross income) needs to be 44-45% or less.
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