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How Lenders Determine How Much House You Can Afford – MintLife. – How Lenders Determine How Much House You Can Afford. There are several key factors in securing a mortgage loan, and your credit is one.
When you’re looking to buy a home, the question, "How big of a mortgage can I get?" is a natural first step. A better question that you should ask yourself, however, is how much can you afford, and how will that amount affect your other financial goals right now and in the future.
How Big of a House Can You Afford? | Simple – Estimate your maximum mortgage. You can calculate a rough estimate of how big of a house you can afford by using the same methods that mortgage lenders use: debt-to-income ratios. Mortgage lenders calculate debt-to-income ratios to ensure they give lenders mortgages proportional to their existing means.
