Whether you have plans to apply for your first mortgage, you want to move up or you have plans to refinance, one thing is certain. You may want to take every step possible to increase your likelihood of having your loan request approved. Applying for a home mortgage can be stressful, and many people commonly wonder if they make enough money to qualify for the loan amount they want, if their credit scores are good enough and more. While these are common concerns, you can alleviate many of your concerns by using online mortgage calculators. Each loan request will need to be professionally underwritten, and a calculator cannot eliminate that step from the loan process. However, many calculators will use the same calculations and criteria that underwriters use. Therefore, you can learn more about your loan approval possibilities by using the right loan calculators.
What Mortgage Calculators Can Tell You
With such a wide range of mortgage calculators available to choose from, many offer different functional uses and benefits. Some, for example, are used to calculate your monthly mortgage payment. Others may be used to help you determine the maximum loan amount you may qualify for. Some even delve deeper into underwriting guidelines, and they may tell you how your debt situation impacts your loan application. If you plan to refinance, you can also find mortgage calculators that compare two mortgage scenarios against each other or that explore the benefits of refinancing in other ways. Some people will use these calculators to better position themselves to achieve specific real estate goals. For example, you may want a specific loan amount, and you may use a mortgage calculator to determine that you need to pay off your car before you can qualify for that loan amount.
Why Some Calculators Give You Different Results
Many home loan applicants love to tinker with calculators, and you may have used different calculators that perform similar functions and received different results. This is a common occurrence, and there are several reasons why this may happen. For example, it could happen if you input different sets of data in the calculators. It could also happen if the calculators are programmed in different ways. For example, some may take into account a certain inflationary rate, and others may not. By understanding these differences, you can more easily decide which calculators to use.
Finding the Right Calculators to Use
Some mortgage calculators use underwriting guidelines and terms for specific lending programs. When you use a loan calculator on your lender’s website, you can more comfortably assume that the lender will use those same guidelines in their underwriting criteria. Therefore, a good rule of thumb is to use the calculators that are on your lender’s website rather than on third party websites.
Utilizing mortgage calculators is a wonderful way to learn more about potential loan terms and limitations as well as to become more educated about the loan application process in general. If you are preparing to apply for a home loan, take time to explore your lender’s website for calculators as a first step.