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SWITCH CHANNEL - Jonesing For A House? Here's How To Know If You Can Afford It
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Buying a home is a big, big deal. And before you go shopping, it's best to sharpen your pencil. According to Business Insider, if you're looking to buy a home, there are several signs you're ready. Can you make a full 20% down payment without going into your emergency savings? Will your monthly payment be less than 30% of your monthly income? Utilities, trash, water, and repairs all cost money. How much will you need each month? If your debt-to-income ratio is high, it might be harder to get approved for a mortgage. 43% is generally the highest ratio that can be approved for a mortgage. 36% is much better. Happy hunting!
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