Buzz
When applying for a mortgage, there are many factors to keep in mind. Your income, down payment, and credit score are crucial in determining the loan amount you qualify for. However, your daily commute to work could also influence your mortgage rate in unexpected ways.
Credit.com highlights:
Some mortgage lenders may take commuting costs into account if you travel a certain number of miles to and from work each day or week. This additional monthly expense can affect your debt-to-income ratio (DTI) and, in turn, impact the amount you’re eligible to borrow.
Not all lenders factor in commuting when determining your home affordability. Some may only consider part of your commute—such as the miles beyond the first 50, for instance. Regardless, this can reduce your available income for other expenses.
In essence, your monthly commuting expenses are factored into your income and may lead to a lower loan approval amount. To avoid unexpected mortgage costs, Credit.com recommends estimating your commuting expenses using a housing and transportation calculator. For further details, read the full post.
Photo by Timo Newton-Syms.
