You think you can afford a mortgage, but does the lender agree? How do you know what the lender thinks of your situation? Besides asking the lender flat out, you can learn the calculations lenders use. This gives you a good idea of what to expect when you apply for a mortgage. Debt Ratios are the Most Important If we had to pick one thing lenders look at the most, it’s your debt ratio. This is your liabilities versus your income. However, lenders may calculate your income differently than you. … [Read more...]