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Jim Anderson

Broker Associate

Do You Qualify for a Mortgage?


If you're considering buying a home especially, it's important to take a close look at your finances before you start shopping.

Start with the 28/36 rule. Many lenders use it to determine credit eligibility.

The "28" refers to the percentage of your gross monthly household income that should be allocated for housing costs each month, including principal, interest, taxes, property insurance and private mortage insurance. The "36" represents the total debt that you carry (mortgage plus everything else that shows on a credit report). It shouldn't exceed 36 percent of your total gross income.

As long as your monthly debt – like car, student loan and credit card payments – doesn't exceed the 36 percent, you're probably in good shape to qualify for the loan amount that meets your "28" calculation.

Each lender is different and there are exceptions so its a good idea to call me first so I can help you get pre-approved.