HOME > Lending > Residential > A Quick and Easy Guide to Home Mortgages > How Do I Qualify for a Mortgage?
A Quick and Easy Guide to Home Mortgages
How Do I Qualify for a Mortgage?
In order to qualify for a mortgage, most lenders require that you have a debt-to income ratio of "28/36." This means that no more than 28 percent of your total monthly income (from all sources and before taxes) can go toward housing, and no more than 36 percent of your monthly income can go toward your total monthly debt (this includes your mortgage payment). The debt they look at includes any longer term loans like car loans, student loans, credit cards, or any other loans that will take a while to pay off.
You also have to think about what you can afford. Specifically, you need to know how much you have to use as a down payment and how much of a monthly payment you can handle.The calculators in the last section of the mortgage guide, "How Can First Republic Bank Help?", can help you answer these questions and prepare for your first meeting with a lender.
Please refer to our financial tools.
