Minimize consumer debts = buy a bigger house

To maximize the amount of mortgage you can qualify for, simply keep your monthly debt obligations (loans for vehicles, student, credit lines, credit cards, etc.) at 7% or less of your gross household income. For example, if your household income is $5000/mo, then your total monthly payments should not exceed $350/mo. If you have to have that big truck payment, for example, just understand that it will definitely erode the size of mortgage you will be able to qualify for.

Topics: Tips, Debt Management