How much you can borrow will depend on your income, down payment, job
stability, existing debts, credit references and payment history. Lenders
usually use the following two qualifying guidelines to decide how much of a loan
you can manage:
Your monthly housing expenses - mortgage payment, property taxes,
insurance, etc. These expenses should be no more than 28 percent of your
monthly gross income.
Your monthly living expenses and any long-term debts - utilities, car and
school loan, child support, health and car insurance, etc. These expenses
should be no more than 36 percent of your monthly gross income.