Equity loans Discussion of the basics
Another factor that will come into play is your income and how it compares to your current debts, including your planned mortgage payments every month. This is called your debt to income ratio. In order to be approved for the home loan, you must prove that you are able to manage all of these expenses. If the lender feels that your debts may be too high compared to your monthly income, you may still qualify for a home loan, but you may have to increase your down payment to lower to the total amount borrowed. In some cases, you may also be required to pay more in interest costs in order to offset the possibility that you will not mange to make payments.