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Just how much will the monthly payments be on that dream home? Don’t start looking at a price range you cannot afford. Know up front if your payment will be affordable.
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Debt to Income Ratio
Mortgage lenders have gotten more strict on debt to income ratios. Know yours before you walk into the bank. While the maximum ratio varies depending which type of loan product you are purchasing, expect that your monthly ratio of income to consumer debt must be less than 42%.
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