What do they look for?
Numbers Rule This is what lenders look for...
a lender will look at two numbers in deciding how much you can afford:
The guideline is 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. In addition, your
total monthly debt payment, including housing and other long-term debts, should
be no higher than 36% of your monthly gross income.
Chart the Numbers
Print out this chart and fill it in to understand how a lender evaluates you for a mortgage.
gross annual salary
monthly income (annual salary divided by 12)
loan/8% interest - monthly payment (PI)
Other monthly debts
monthly housing costs
Are You Ready to Crunch
the Numbers Now? Here is your opportunity.
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