Mortgage calculator

Q: I’ve heard I need to use a mortgage calculator to help determine whether I will qualify for a loan. Is this true; and how does it work?

A: A mortgage calculator helps homeowners assess what kind of home loan they can afford. To meet lender requirements, you’ll need to demonstrate that you have the financial ability to make your monthly payments. This helpful automated tool allows you to figure out what kind of loan fits within your budget and whether you can expect problems when you apply for a loan. This tool also helps potential buyers stay out of trouble by helping them avoid loans that may put them in financial peril further down the line.

You can use the following loan calculator to help asses what type of home you can afford.

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By Nathaniel Hutchinson
Financial Expert


Does My Job Affect My Credit Score?

Q: Years ago, I had some unavoidable financial problems that put me way behind on bills. Since then, I’ve worked hard to repair my financial reputation and am now planning to buy a house. Unfortunately, I’m only a waitress and am worried that the lendor will look down on this. Does my job affect my credit score, or will this not matter in the eyes of the underwriter?

A: Your job does not affect your credit score; however, the opposite can be true. Many employers consider a good credit score rating as a sign of responsibility, and some refuse to hire people with subpar credit histories.

In your case, you don’t have to worry about your job affecting your credit rating; however, since waitresses don’t usually make a lot of money, the underwriter may determine that you can’t afford a mortgage loan. On the other hand, if you are married or qualify for a low-income government loan, your credit score and income levels may not be that important.

In the end, the lender will consider your job to see if you can afford the monthly mortgage payments. The fact that you are a waitress will not affect your actual credit rating, but it could torpedo the loan, especially if you haven;t reported all of your tips throughout the year.



By Nathaniel Hutchinson
Financial Expert