The Loan Officer Podcast | Episode 97: How Much Do Mortgage Loan Originators Make?
When it comes to mortgages, one of the most important factors to consider is your income. How much you earn is a major factor that lenders use to decide whether or not you are eligible for a loan. Whether you’re planning to buy a house or are just curious about what you should be earning to get a mortgage, this article is for you.
What is a mortgage?
A mortgage is a loan taken out by a borrower to purchase a property. The lender provides the borrower with the money to buy the property and the borrower pays back the loan, plus interest, over a period of time. Mortgages are typically paid back over 15-30 years and are secured by the property itself, so if the borrower stops making payments, the lender can take possession of the property.
How much do I need to earn to qualify for a mortgage?
The amount you need to earn to qualify for a mortgage depends on your lender and the type of loan you’re applying for. Generally, lenders prefer borrowers to have a steady income and to have a debt-to-income ratio of less than 43%. This means that your total monthly debt payments should be less than 43% of your gross monthly income.
For example, if you make $60,000 per year, your total monthly debt payments should be no more than $2,100. This means that if you have a car loan and credit card debt, your monthly payments for these loans combined should be no more than $2,100.
In addition, lenders typically require borrowers to have a credit score of at least 620 to qualify for a mortgage. They also want to see that you have enough money saved for a down payment and closing costs. The down payment is typically 20% of the purchase price of the home and closing costs are typically 2-3% of the purchase price.
These are the basic requirements for most lenders, but some may have stricter requirements. For example, some lenders may require a higher credit score or a larger down payment. It’s important to do your research and shop around to find the lender that best suits your needs.
How much should I be earning to get a mortgage?
The amount you need to make to qualify for a mortgage depends on the lender and the type of loan you’re applying for. Generally, lenders prefer borrowers to have a steady income and to have a debt-to-income ratio of less than 43%. They also typically require a credit score of at least 620. In addition, you will need to have enough money saved for a down payment and closing costs.
The bottom line is that you should be earning enough to cover your monthly debt payments and have enough saved for a down payment and closing costs. The exact amount you need to make will depend on the lender and the loan you’re applying for.
Key Points:
• A mortgage is a loan taken out by a borrower to purchase a property.
• The amount you need to earn to qualify for a mortgage depends on your lender and the type of loan you’re applying for.
• Generally, lenders prefer borrowers to have a steady income and to have a debt-to-income ratio of less than 43%.
• They also typically require a credit score of at least 620.
• In addition, you will need to have enough money saved for a down payment and closing costs.
• The exact amount you need to make will depend on the lender and the loan you’re applying for.
People Also Ask:
Q: What is the minimum income required for a mortgage?
A: The exact amount you need to make to qualify for a mortgage will depend on the lender and the type of loan you’re applying for. Generally, lenders prefer borrowers to have a steady income and to have a debt-to-income ratio of less than 43%.
Q: What is the minimum credit score needed for a mortgage?
A: Generally, lenders require borrowers to have a credit score of at least 620 to qualify for a mortgage.
Q: How much money do I need to save for a down payment and closing costs?
A: The down payment is typically 20% of the purchase price of the home and closing costs are typically 2-3% of the purchase price.
How much should I be earning to get a mortgage? – Most Popular?
From entry level to seasoned veteran – D.O. and JC cover listener requests regarding how much someone can make as a mortgage broker, bank loan originator, loan officer for a home builder, call center originator and more.
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ABOUT THE HOST
Dustin Owen is a Certified Mortgage Banker and a 15+ year veteran of the mortgage industry – who started his career as a loan officer – and now helps run one of the largest regions for Waterstone Mortgage. In addition to working as a mortgage professional, Dustin also owns a real estate investment company and is a venture capitalist.
John Coleman is an Emmy award-wining content creator and producer with over 12 years of experience in digital media, social media and marketing. JC has collaborated with the largest brands in the world of sports and entertainment including, EA SPORTS, NFL, NBA, NHL, FIFA, Xbox, PlayStation and Nike.