Mortgage  Question?
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What size mortgage will I qualify for in six months?

How do I determine what size mortgage I can qualify for in six months? I am trading in my car and want to know how my new car payment impacts what size mortgage I can afford in the future.

Michael Jensen, Mortgage and Finance Guru
, Mortgage and Finance Guru

When you apply for a mortgage, lenders focus on your credit score, debt-to-income ratio and other mortgage qualification guidelines to determine what size mortgage you qualify for. In general, the higher your monthly gross income and lower your monthly debt, the higher the mortgage amount you can afford. You can use our Mortgage Qualification Calculator to determine what size mortgage you can afford based on different monthly gross income and debt expense figures.

To answer your specific question, what size mortgage you can afford in six months depends on your financial profile as well as interest rates at that time. For example, if your monthly debt expense stays the same with your new car payment, you should be able to afford the same mortgage amount in six months, assuming your monthly gross income, credit score and interest rates also remain the same. If your monthly debt expense increases due the new car payment or for other reasons then you would likely qualify for a lower mortgage amount.

Other factors including your monthly gross income and credit score will also determine what size mortgage you qualify for in six months. If your monthly gross income and credit score improve over the next six months then you will likely be able to afford a larger mortgage amount. We recommend that borrowers check their credit scores at leas six months before they apply for a mortgage to know where you stand and to identify and address any potential issues in your credit profile. We provide a detailed explanation of your credit score and the mortgage process on FREEandCLEAR and you can review your credit report for free on websites like CreditKarma.com, Credit.com or AnnualCreditReport.com.

The final factor that will determine what size mortgage you can afford in six months is interest rates. If interest rates go up, the mortgage amount you qualify for could decrease while if rates go down the mortgage amount you qualify for could increase. Although it is impossible to predict what interest rates will be in six months, most experts predict that it is more likely that interest rates will increase rather than decrease over the next year. You can use our INTEREST RATES function to check updated rates for lenders near year.

After reviewing the resources on FREEandCLEAR we recommend that you contact multiple lenders to determine what size mortgage you qualify for. You can review lenders in your area by clicking INTEREST RATES We advise you to contact at least four lenders as qualification guidelines vary.

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About the author

Michael Jensen, Mortgage and Finance Guru

Michael is the co-founder of FREEandCLEAR. Michael possesses extensive knowledge about mortgages and finance and has been writing about mortgages for nearly a decade. His work has been featured in leading national and industry publications. More about Michael

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