can save yourself a lot of wasted time and energy if you learn to look at yourself
as a lender would.
Lenders will look at two basic numbers in deciding how
much you can afford to borrow. Keep in mind: Once you know how much you can borrow
you'll also know the price range of houses to look at.
The lending guideline is that you should spend
no more than 28% of your monthly gross income
(before taxes) on housing expense. That can include business income, disability
or retirement benefits, alimony, child support, etc.
Also, your total monthly debt payment, including housing and other long-term debts,
should be no higher than 36% of your monthly gross income.
A good credit report is an important
part of your financial profile. Before you begin the process of applying for a
mortgage loan be sure that you review your most recent credit report.
certain all of the information included in it is accurate.
Errors or misinformation
in your credit history could have a negative impact on your chances for the best
loan and interest
Do you match one of these profiles? Test yourself
8 of 11