Buyers & Sellers

Buyers Basics | Mortgage Options | Qualifying Guidelines | Your Price Range | Your Credit | Choosing a Realtor

Qualifying Guidelines

Traditionally, lenders use the following guidelines to decide how much of a loan you can manage:

1. Add up your monthly housing expenses—mortgage payment, property taxes, insurance, etc. These expenses should total no more than 28 percent of your monthly gross income.
2. Then add your monthly living expenses and any long-term debts—utilities, car or school loans, child support, health and automobile insurance, etc.
3. When you add 1 and 2 together, they should be no more than 36 percent of your monthly gross income.

But the above is just the traditional guideline. With all the loan programs available now, you owe it to yourself to check with your lender or your Realtor.