Nevada Mortgage – How Much Can I Borrow?
This is typically the first question our Las Vegas Mortgage clients ask when applying for a new home loan.
If you were to type “Mortgage – how much can I borrow” in a search engine, the top results will generally lead you to a series of links to mortgage loan calculators.
Even though an online mortgage calculator may be a good tool for reference, it probably won’t give you the full story about what size mortgage you can borrow.
Banks look at a few things when qualifying a borrower for a new mortgage:
- Credit
The most obvious measure of a borrower’s credit standing is the score, which can range between 300 and 850. While there are several mortgage programs with different credit guidelines, having a 620 or greater will increase your chances of getting approved.
There is other criteria that banks look at regarding a borrower’s credit standing, such as payment history, total balances and limits, type of credit borrowed, and recent inquiries.
- Debt-to-Income Ratio
The (DTI) is calculated by dividing a borrower’s total monthly liabilities (minimum credit payments, auto loans / leases, child support, mortgage payments…) by the verifiable monthly income.
* Verifiable income includes pay stubs, W2’s, Tax Returns, and in some cases 1099’s and bank statements.
Example Scenario:
Current liabilities + new mortgage payment = $1,500 a month
(divided by)
Gross Monthly Income of $3,500
The DTI would be 42%.
Most mortgage guidelines require a 42% or lower Debt-to-Income ratio.
- Loan-to-Value
The (LTV) is calculated differently depending on whether the new transaction is a purchase, refinance, or rehab loan.
Basically, it is the amount of the new loan in comparison to the total value of the property.
When qualifying for a Las Vegas FHA loan on a purchase, a 3.5% down payment would equal a 96.5% LTV.
Keep in mind that banks will verify a paper-trail of the assets used for the down payment, so it is important to communicate with your loan officer about your current financial position.
There are a few factors to consider when deciding on the amount of your new mortgage:
1. Desired Down Payment
2. Budgeted Monthly Payment
3. Length of time you want to own the property
Updated Clark County Nevada lending limits will also play a role in determining the type of mortgage program and amount you are qualified for.
Since Las Vegas mortgage rates may also have an impact on your monthly mortgage payment, it is important to pay attention to the market.
Schedule a strategy session with our professional Las Vegas Mortgage staff by phone or at our office to discuss the best lending solution for you and your family.
Other Valuable Articles:
How Much Can I Borrow, and Other FHA Basics
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Top 5 Las Vegas Mortgage Links / Articles / Questions
- Las Vegas First-Time Home Buyer Frequently Asked Questions
- Las Vegas Mortgage – How Much Can I Borrow?
- What Are The Current Mortgage Interest Rates?
- Applying For A Las Vegas Mortgage – What Documentation Do I Need?
- How Does The Mortgage Approval and Funding Process Work?
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Raintree Mortgage (Las Vegas)
9488 West Flamingo Rd. Suite 102
Las Vegas, NV 89147 | NV LIC 2511
702-432-5626 | Email
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