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motherisaverb

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How can I buy a home if my debt to income ratio is too high?
I want to buy a home in about a year. I have a well paying job, a fair credit score, all of my bills are paid on time and I have a bit of money left over. I know I can afford a mortgage but all of the resources I've used have stated that my debt to income ratio is too high. How can this be if I am paying ALL my bills on time with money left over? How can I buy a home if this is a problem?

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Maybe Not Now.

How much on each bill are you paying?  Is it more than the miniimum, or just the minimum?  Are all credit cards paid in full within a couple of months, max? Do you have enough to meet the insurance costs, property taxes, homeowners association fees that may be assessed?  Do you have an 'emergency fund" set up so that  any of the inevitable repair bills that will come up with home ownership will be covered?   These are some of the additional things besides the mortgage payment that mortghage lenders consider. Find out what the criteria are to qualify for a mortgage and work on getting that debt to income ratio reduced so that you can eventually have that home of your own.

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