Applying for a Home Loan

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How much house payment can I afford?

Applying for a Home Loan

Mortgage lenders typically use three tests: 1) The monthly house payment including property taxes and insurance should not exceed 26% of gross monthly income; 2) All monthly debt payments plus the house payment should be less than 38% of gross monthly income; 3) The home buyer should have two to three months' worth of payments in an emergency fund.

   

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