If a buyer purchased a 30-year fixed rate mortgage, at an annual interest rate of 4%, and a mortgage loan amount of $150,000, the monthly principal and interest payment would be around $716 each month. The mortgage payment does not include taxes and insurance.

Before looking for a new home, make sure to check your credit report and deleted all negative items in order to increase your credit score. An individual’s credit score is often a primary factor involved with the approval of a credit application. Lenders will require that a credit score fall within a certain range. However, the credit score is not the only consideration for approval. Lenders also consider a borrower’s income, and debt to income ratios.

The 28/36 Rule is a guide that lenders use to structure their underwriting requirements. Some lenders may vary these parameters based on a borrower’s credit score, potentially allowing high credit score borrowers to have slightly higher debt to income ratios. However, be careful. Just because a lender may be willing to extend credit doesn't mean that you should necessarily borrow that amount.

The usual rule of thumb is that you can afford a mortgage two to 2.5 times your annual income. The 28/36 Rule states that a household should spend a maximum of 28% of its gross monthly income on total housing expenses, and no more than 36% on total debt service, including housing and other debt such as car loans.

ABOUT MAS CREDIT REPAIR

Marc A. Stephens (MAS) provides personalized consulting services to individuals and businesses. MAS has prepared the most effective credit repair process with over 15 years of proven results. Pursuant to United States Code Title 15 U.S.C. § 1681g(c)(2)(E) for credit repair, MAS can rapidly remove any item from your credit report, even if the debt is yours. MAS takes tremendous pride in ensuring that clients have a realistic plan of action to successfully repair their credit.

MAS will quickly delete the following items from your credit report:

Auto Loans, Bank Loans, Bankruptcy, Charge-Offs, Child Support, Collections, Credit Cards, Foreclosures, Home Loans, Inquiries, Judgments, Late Payments, Liens, Repossessions, School Loans, Utility Bills