Here's the quick and painless mortgage qualifier/mini application from Sky Minor, mortgage master. (patent pending). I am a fully qualified mortgage broker and I arrange the financing for my buyers purchases about 75% of the time.



In the over simplified version of a mortgage pre-qualification, a borrower will need three things to get a mortgage on a property.

1. Credit score of at least 680.
 
2. A Down payment of at least $15000.

3. Two years of tax returns showing NET household income of at least $60000 annually. (That's line 37 "Adjusted Gross Income" on the first page of your tax return.) Lenders average income over the last two years.

The formula to determine how much you qualify for is this: Every $25,000 of adjusted gross income will qualify you for about $100,000 of mortgage.

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If you want to geek out and really see what you are qualified for, follow this longer formula to qualify:

1. Most importantly, Have a credit score of at least 620.

2. Take your household's gross annual salary or taxed income and divide it by 12 to get your monthly income.

3. Take 1/3 of that monthly income number.

4. Divide this number by 666.

5. Multiply the answer by 100000. That is how much you will qualify for a 30 year fixed rate mortgage loan at 7% interest.

For an example, let's use a household earning an income of $100,000 per year.

$100000/12=$8333 monthly

8333/3=2777

2777/666=4.17

4.17x100000=$417000. This household will safely qualify for at least $417000 mortgage.

This is only an estimation but it's a good tool to know if you are ready to buy a property.

I am a fully licensed and certified mortgage broker in all 50 states for residential and commercial properties. Together with Rachel, my partner we have over 180 loans under our belt including all of our own purchase and refinance loans to build our own portfolio of properties. To leverage our experience and apply for your mortgage with us please click here.

Lenders have generally become more stringent with underwriting practices but they are still funding loans to borrowers who can show they have the ability to repay the loan. I have access to a program that does not require income verification for first time home buyers with a credit score over 720 and a 20% down payment. If you meet that criteria you can go here to qualify.

Buying income property one is allowed to use 75% of the properties' existing rental income to qualify for the mortgage. The buyer will need to have 20% downpayment. It's an especially good time to be buying small income properties under 5 units in this real estate downturn. The pros are scooping up income producing properties at fire-sale prices.

Using me as a source of financing for buying your property allows for more security and control of the transaction. It is said that "If you want something done right, you've got to do it yourself" and I believe that is very true in the process of buying real estate. 

Always save money.