Mortgage lenders require that your total monthly debt including car loans, credit card bills, and student loans be no more than 36 percent of your gross monthly income when qualifying for a mortgage. This is your debt-to-income ratio. If your ratio is too high, consider paying down high interest credit cards to get below the required limits.
What Should You Know About Qualifying for a Mortgage?
Some Highlights About Qualifying for a Mortgage:
- Many buyers are purchasing a home with a down payment as little as 3%.
- You may already qualify for a loan, even if you don’t have perfect credit.
- Take advantage of the knowledge of your local professionals who are there to help you determine how much you can afford.
