Many borrowers apply for home loans while not understanding how lenders determine their “buying power”. The formula is quite simple. After analyzing a borrower’s credit history and down payment amount, a lender will look at the borrower’s ability to repay.
A lender will first look at a borrower’s monthly credit expenses. These will include the […]
Blog entries tagged with: buying power
How Lenders Determine your Buying Power
Posted December 17th, 2007
Tags: Tags: buying power, lending ratios