You Want Keys To A New Maine Home, But What's This About Debt Ratios?

Real Estate Agent with MOOERS REALTY ME Broker License 106759

maine home bank photo

Getting qualified for a Maine home loan means there is a bank financing check list.

Regulations and procedures to consider before you get those new Maine home house keys.

Banks in Maine, any state want to make loans on homes, cars, and a slew of other lending products.

It's what they have to do with deposits. Lend them out. And what better security than your Maine home loan right?

Well unless you get a local bank loan from an institution that does not sell your mortgage on the secondary market, there are out of state players looking over their shoulder.

If you spend too much of the check you pull home, sorry Charlie.

The thinking is your installment debt can not handle the extra load of the Maine home in the price range you are flirting with, eyeing.  

Debt ratios too high. 

Because you are struggling with a big new car loan you just took out. Or that has five years left.

Student college pay back, a medical bill and a variety of plastic cards with carried balances.

And maybe a variety of toys from a four wheeler, snow sled and a jet ski.

Too much debt and you can not handle the new home mortgage and foreclosure, repossession can happen.

The bank in Maine does not want your home. They need the payments for the home mortgage made on time, the property taxes and insurance bill for coverage on the place to be kept current. For you to have money left over, with debt ratios low enough to be able to maintain the place.

It used to be a rule of thumb for Maine home buyers that was quickly quoted  for years. "Your house payment should be one week's paycheck". Or "the price of the home you buy in Maine should be 2.5 times your annual salary or less". I like the first part of that recipe best for keeping your Maine home. Arriving at an easy to stomach payment so repair of the place,  money for savings and emergencies can be handled.

maine music town houlton me photoBring all vehicle, credit card statement payment information, monthly income and expenses, a weekly pay stub to the bank loan pre approval meeting.

In time you will need a signed purchase and sale agreement, a legal description (deed copy) for the house you are trying to buy.  

And more that the real estate agent, broker, REALTOR in Maine will help you with to keep the process moving to a property closing. 

Up to 45% debt to income ratios can be considered and you still get a home.

But those numbers, that ratio is higher than I would run my checkbook.

The personal household ledger. So I can sleep nights.

And have money to not become house poor and to use to save for college accounts. Put on braces and keep up with sports equipment costs, other kid related expenses. From prom dresses to cell phones, car insurance.

Also the bank lobby you wander into for a pre approval for a Maine home loan likes to see you on the same job for two years or more.

In the line of work you went to school, were trained for. Learn more about Maine State Housing Loans.  VA Maine home loans, mortgages worth looking into if you were a veteran too. Learn more about FHA home loan programs.

maine real estate broker andrew mooersLuckily Maine home prices are so much lower.

So easier to buy, make payments on happens with a Maine house purchase.

Here are some Houlton Maine banks, financial lenders to consider for a new home.

Ready to learn more about the area, the property listings in Maine for sale?

Fire away on those questions. Let's get started. It is why we are here. 

Maine, big state, less traffic, more space. 

I'm Maine REALTOR Andrew Mooers, ME Broker



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Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC


Lenders are looking a the debt ration very closely.

Thanks for sharing an outstanding post.

Good luck and success.

Lou Ludwig

Jan 27, 2013 11:23 AM #1
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Qualifing for a mortgage is constantly evolving. With the new QM rules that will go into place next year, it will effect many potential home buyers.

Make it a great week!

Jan 27, 2013 06:07 PM #2
Andrew Mooers | 207.532.6573
Northern Maine Real Estate-Aroostook County Broker

Lou ... They want you to stay and be able to pay. Hey.

Joe ... Better loans. There was a time if you did not scrimp, save 25% of the loan made locally, you had to keep renting. Lack of down payment not poor credit was the issue. Better loans when you the buyer have lots of personal skin, money invested in the house game.

Jan 27, 2013 08:55 PM #3
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Andrew Mooers | 207.532.6573

Northern Maine Real Estate-Aroostook County Broker
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