Don't Buy a Car - or Did You Already Buy One?

Debt-to-Income Ratios and Car Payments

When determining your ability to qualify for a mortgage, a lender looks at what is called your "debt-to-income" ratio. A debt-to-income ratio is the percentage of your gross monthly income (before taxes) that you spend on debt. This will include your monthly housing costs, including principal, interest, taxes, insurance, and homeowners association fees, if any. It will also include your monthly consumer debt, including credit cards, student loans, installment debt, and car payments.

Next How Buying a Car Reduces Your Purchase Price

All articles © 2000 RealEstate ABC
No articles may be reprinted or displayed without permission.

Home Buyer Advice - Menu

Benefits of Owning Your Own Home
The Best Investment Income Tax Savings Stable Monthly Housing Costs Forced Savings Freedom and Individuality More Space
Important Things To Avoid Before Buying a Home
Don't Move Money Around The Effect of Changing Jobs No Major Purchases of Any Kind
Don't Buy a Car - or Did You Already Buy One?
When Income Grows and You Want to Buy "Stuff" Debt-to-Income Ratios and Car Payments How Buying a Car Reduces Your Purchase Price
The Business Cycle and Buying a Home
Recession and Expansion Supply and Demand Should You Try to "Time the Market"?
Comparable Sales and Your Offer Price
Determining Your Offer Price Comparable Sales in the Public Record Comparable Sales in the Multiple Listing Service Comparable Sales - Pending Transactions Other Factors Influencing Your Offer Price
Major Factors Influencing your Offer Price
How Property Condition Affects Your Offer How Home Improvements Affect Your Offer How Market Conditions Affect Your Offer How Seller Motivation Affects Your Offer The Final Decision on Your Offer Price
Offering to Purchase Real Estate- the Basics
Introduction and Overview Contingencies in a Purchase Offer Earnest Money Deposit The Closing Date Transfer of Possession
Writing an Offer - Safeguards Regarding the Property
Disclosures From the Seller Condition of the Property Upon Transfer Inspections You Should Require Final Walk-Through Inspection
How Financing Details Affect Your Offer
Down Payment Interest Rates Closing Costs and Financing Incentives Seller Financing Cash Offers Other Financing Details in Your Offer
How FHA and VA Financing Affects Your Offer
Extra Costs for the Seller VA and FHA Appraisals
Selecting Service Providers
You and the Seller Must Agree Escrow and Settlement Title Insurance Termite and Pest Inspection

---

---

North Atlanta
  Luxury Homes

---