{"id":21735,"date":"2023-06-22T06:00:58","date_gmt":"2023-06-22T13:00:58","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=21735"},"modified":"2025-09-30T19:23:18","modified_gmt":"2025-10-01T02:23:18","slug":"buyer-mortgage-questions","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/buyer-mortgage-questions\/","title":{"rendered":"15 Mortgage Questions to Ask Lenders Before Buying a House"},"content":{"rendered":"

What do you think is the most stressful (and confusing) part of buying a house? Would you say it\u2019s trying to find the right real estate agent<\/a>? Maybe it\u2019s the task of looking at house after house until you find the one.<\/i> Why, maybe it\u2019s even dealing with the anxiety that comes while you\u2019re waiting for closing day<\/a> to finally come. All of these things are stressful and confusing, but you\u2019d be surprised by how many people struggle with the mortgage process. And they need answers to their mortgage questions.<\/p>\n

Why can\u2019t it be as easy as asking for a certain amount of money, getting approved, and buying a house? Why must there be so many lending companies, all of which have different requirements and terms?<\/p>\n

As a first-time homebuyer, you\u2019re likely among the 85% of buyers<\/a> who will apply for a home mortgage<\/a> instead of paying cash<\/a>. To help you understand exactly what you\u2019re getting into, we\u2019ve created a comprehensive guide that answers the most common mortgage questions buyers have for lenders about the mortgage process.<\/p>\n

Without further ado, let\u2019s get started.<\/p>\n

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Save thousands when buying a home<\/h3>\n

HomeLight-recommended real estate agents are top-tier negotiators who understand the market data that helps you save as much as possible when buying your dream home.<\/p>\n \n

\n Find a top buyer's agent<\/a>\n <\/div>\n <\/div>\n<\/div>\n\n<\/span><\/p>\n

Home affordability<\/h2>\n

Q: How much home can I afford?<\/a><\/h3>\n

A: Home affordability is pretty self-explanatory \u2014 it\u2019s an expression of how much house you can afford to buy and still live comfortably.<\/p>\n

However, the home a person can afford isn\u2019t cut-and-dried; it varies from buyer to buyer. Everyone\u2019s finances and circumstances are different.<\/p>\n

To figure out how much house you can afford<\/a>, you\u2019re going to have to take a close look at a few different variables.<\/p>\n

Monthly income<\/h4>\n

The very first thing you need to consider is your income. First, lenders will look at your annual gross income<\/i><\/a> when they\u2019re deciding how much money you can borrow. Your gross annual income includes money earned from full-time jobs, part-time jobs, and any money earned from self-employment (so long as you\u2019ve been steadily earning this self-employment income for at least two years). It also includes alimony payments, income from rental properties, unemployment earnings, and pension payments.<\/p>\n

However, when you<\/i> are trying to figure out how much house you can afford<\/a>, you should also look at your monthly net income<\/i><\/a>. <\/i>This is the amount of money you have after taxes and any deductions come out of your paycheck. You can include alimony, child support, and passive income when calculating your net pay.<\/p>\n

Note:<\/i><\/b> If you have a spouse, you will want to include their earnings in these figures. <\/i><\/p>\n

Debt-to-income ratio<\/h4>\n

After looking at how much money is flowing into your household, you\u2019ll want to write down your monthly debts. That\u2019s because lenders will also look at your debt-to-income ratio, or DTI.<\/p>\n

\u201cYou would add up all of your monthly debt payments, such as auto loans, mortgage payments, minimum payments on credit cards, student loan payments and installment debts,\u201d explains Marcus Rittman from HomeLight Home Loans<\/a>.<\/p>\n

To come up with your debt-to-income ratio, Rittman adds, \u201cYou’re going to take your monthly debt and then divide that by your gross monthly income. That number will be your debt-to-income ratio. As a general rule<\/a>, the maximum debt-to-income ratio buyers should use to calculate how much house they can buy would be 43%.\u201d<\/p>\n

As an example, let\u2019s say this is what your monthly debts look like:<\/p>\n