Enter your “Gross” annual income in this field.
Enter your “Net” annual income in this field.
Trouble can come from Self Employed individuals as deductions can reduce qualifying ability. Because of this, reporting less income by paying less in taxes can hurt qualifying. Perhaps the limited documentation (EZ Doc) loans will make a comeback but until then you’re subject to todays guidelines.
This is the amount that the Bank or Lender will lend to you.
This can have two meanings:
1) The amount the seller wants for the home AND what the bank believes is the true value of said property are both equal.
2) The amount the seller wants for the home BUT the bank believes the true Value of said property is less. In this situation, to get financing you must bring the difference of the amount between the seller’s asking price and what the bank believes is the value. For example: Seller’s asking price is $400,000, but the bank’s appraiser values the home at $380,000. You would therefore need to come in with $20,000, the difference between the two amounts – IN ADDITION to the down payment required by the lender.
On a refinance or Cash Out refinance the value is equal to what the appraised value is. That amount is what the lender will lend on based on their underwriting guidelines and Loan To Value (LTV) ratios.
Simply add up all minimum monthly payments from credit card(s), auto loan(s) payment(s), personal loans, student loans, etc. Add these up for a monthly total and entered into the field. DO NOT include cell phone, water, electric or any other monthly household bills. Also, DO NOT include mortgage payments, property taxes or insurance payments in this field.
Both the Property Tax and Insurance amounts are estimated. Only you can know these amounts. It would be in your best interest to enter the proper amounts for a better result. These fields are found in the edit section.
There is another field, Misc. available for any additional monthly cost associated with the said property like HOA, additional tax or other. Any amount entered here will be included in the “PITI” or “ITI” (Interest Only, Tax and Ins.) totals.