1. How much down payment is required for a property and how do different down payments affect your interest rate and any required private mortgage insurance (Mortgage Insurance.)
2. What would the projected monthly payments for properties with various prices look like?
3. What impact do various down payments for a given price point have on your monthly payment?
Visit CreditKarma.com to check your credit rating. With some exclusions for FHA & VA financing, you'll typically need at least a 660 to qualify. The better your credit score, the better rate the bank will offer you. The best rate is available for those with credit scores of
Use an app on your phone or a mortgage calculator online. Ensure that it determines your total monthly payment, known as Principal, Interest, Taxes and Insurance (PITI). Texas has greater property taxes than most calculators would include in, so keep that in mind. We advise utilizing the Quicken Loans app and Karl's Mortgage Calculator for Android (though we strongly recommend against using Quicken Loans.)
Do the math to get your debt-to-income ratio (DTI), which is the sum of all your monthly debt obligations (student loans, minimum credit card payments, auto loans, etc.) divided by your monthly pre-tax income. You will receive approval from your lender for a DTI of about 50%, so you can increase your PITI to estimate how much you will be able to borrow.
