A local mortgage broker, Mike Meena, with Augusta Financial, sends out a daily mortgage update, with additional useful tidbits. A recent update of his is well worth sharing:

home loan sign

“Speaking of money, I had some clients approved for $700,000.00 and over the weekend they found a property within their budget for $680,000.00 with Mello-Roos and solar panels. They were so excited until we spoke yesterday and they asked how much the payment would be with the $400.00 a month Mello-Roos and $250.00 in solar, and $175.00 in HOA. They do not qualify for this house, and even if they did qualify for the property, they would not want to make that payment. After we spoke for a bit they now have a better understanding of how their qualification works. I explained that an additional $825.00 a month is like $165,000.00 in purchase price. So if they are looking at $825.00 in extras then they would only qualify for about $535,000.00 instead of $700,000.00. I know that sounds confusing and I think it is ridiculous that we hit people for the payment on solar panels, but I don’t make the rules. “