How is the amount of a home loan decided?

My husband and I have been approved for a $120K home loan. However, some other couples we know that make the same or less than we do were able to buy homes for up to $20K more than our approved loan. I know some of them also have more monthly bills than we do. So how is something like that decided? Should we shop around more?

By | 2013-08-27T21:19:31+00:00 August 27th, 2013|Mortgages Home Loans Interest Rate|3 Comments

About the Author:


  1. Bart M August 27, 2013 at 11:10 PM - Reply

    You need 20% down and 15 yr fixed rate mortgage with PI not to exceed 25% of net pay.

    Tips: Don’t buy a house if you are broke, don’t take advice from broke people.

  2. bailey07 August 27, 2013 at 10:29 PM - Reply

    the loan ppl

  3. golferwhoworks August 27, 2013 at 10:02 PM - Reply

    they may more bills now than they did have when purchasing. The housing ratios should be around 29% of gross wages (principal + interest + taxes monthly + insurances monthly) the total expense ratio for all other accounts reporting in your credit file should be around 43% with the new purchase included. This is how the loan must be structured or less ratios if so desired by you the buyer. So if you buy less then your ratios will be less. You also when making your statement do not know what types of loans these people have. Some may have qualified on an interest only note when it was possible to do so several years back. So there is no way for me to give you a best answer with out knowing all the facts
    I am a mortgage banker in TN & KY

Leave A Comment