Getting together a down payment is just the initial part of purchasing a home.
Knowing how much of a mortgage payment will fit your monthly budget is another part. Most lenders place a majority of their emphasis on the buyers monthly income and debts. They compare the buyers monthly income to their proposed house payment and call this relationship the income ratio. The other important ratio used by lenders to determine if a buyer is qualified is referred to as the debt ratio. This is the ratio between all the buyers long term debt payments, including the proposed house payment, and the buyers monthly income. The calculators below can help you determine your ratio's.
