Paying off ALL debt can double your home buying power!

So people wonder from time to time how can we afford a home?

So you go to speak to a bank and they tell you that you only qualify for $300,000. So now what? What can that buy in San Francisco at that price?

Paying off ALL your debt can actually double your purchase price when qualifying from a Banks point of view. For Example: A combined gross household income of $13,000 a month with monthly debt of $662.00, and FICO scores of 750+ can only qualify for $300,000. If that household was to pay off all debt they would be able to purchase a home at least for $700,000. (This scenario is based off of Today's rates, qualification guidelines and for example purposes only.)

Why such little monthly debt can affect your qualifying?

Banks have a debt to income ratio that's tailored to specific programs and vary from each Financial institute and available loan programs. Debt to income ratios determines the borrowers liability to the bank. Such a small amount of debt could mean a minimal increase in your D.T.I. (Debt to Income Ratio) which could be the difference of approval or getting denied.

* The above scenario if based off of FHA Access program that only requires 1/2% down payment.

For a FREE consultation to see how you can pay off your debt and how you can afford to purchase more home for your money in San Francisco call me today!

See how a family with $123,000 of debt paid it off in 4.5 years!! CLICK HERE!