Buying
Guide
How
Much House?
Qualifying
How Much Can I Afford?
Sources For Down Payment
How to Reduce Down Payment
One Caution
Figuring Housing Budget
Two Lender Formulas
More Mortgage Help
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Qualifying
In today's market an "affordable" home is not so much
determined by sales price as it is by the financing which translates
that price into a monthly payment. A house hunter's first step is
to set a housing budget, then go shopping for the house (price)
and payments (PI.T I.) that fit that budget. Even
though there are many ways to qualify to buy a home, make sure
the monthly payment makes sense for you. A current rule of thumb
is that the monthly payment should not be more than 25-33% of
gross monthly income. Restrictions will apply for smaller down
payments.
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