By: Jerika P – i-Lead Realty Social Media Manager
When purchasing a home, one of the first steps should be to consider the specific factors that will help determine your home buying power. Home buying power depends on various things such as credit, income, assets, down payment, debt-to-income ratio, and other available resources.
1. The debt-to-income ratio is another factor that can come into play when buying a home.
The debt-to-income ratio is a comparison of the amount of debt a person has to their income. Most lenders prefer to see a ratio that does not exceed 36%. This means that a person’s total monthly debt payments, including their mortgage, should not exceed 36% of their total monthly income.
2. Other resources could also come into play when trying to buy a home
Some buyers may have family members that are willing to help cover closing costs, make large down payments, or even provide gifts of equity. These resources could make a difference in the lender making a decision on the loan.
*Disclaimer: We are not offering a lending product, or guarantying that a specific lender product will be available to a given customer.*
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