The debt-to-income ratio
Underwriting compares your total monthly debt payments, including the new mortgage, against your gross monthly income. Limits vary by program and by the strength of the rest of the file.
Student loans, car payments and credit card minimums all count. Paying off a single high-payment installment loan sometimes raises your price range more than saving another few thousand dollars.
Michigan taxes change the math
Property taxes vary meaningfully between Downriver cities, and the taxable value can change after a sale. Two homes at the same price in different cities can carry noticeably different payments.
Always ask for the estimated post-sale tax figure rather than the seller's current bill.
Qualifying amount versus comfortable amount
The maximum a lender approves is not automatically the right budget. Factor in maintenance on an older home, utilities, and savings goals before deciding where to shop.
This article is general educational information, not financial, legal or tax advice, and it is not a commitment to lend. Program guidelines and availability change. Talk to a licensed loan officer about your specific situation.