Mortgage brokers are mainly worried about your capability to settle the home loan. To determine they will consider your credit history, your monthly gross income and how much cash you'll be able to accumulate for a down payment if you qualify for a loan. So just how much home can you manage? To understand that, you must know a concept called "debt-to-income ratios."
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The typical debt-to-income ratios will be the housing cost, or front-end, ratio; while the total debt-to-income, or back-end, ratio.
Front-end ratio: The housing cost, or front-end, ratio shows just how much of your gross (pretax) month-to-month earnings would get toward the mortgage repayment.