Select independently determines what we cover and recommend. We earn a commission from affiliate partners on many offers and links. This commission may impact how and where certain products appear on this site . Read more about Select onor a seasoned real estate investor, buying a home involves a lot of paperwork and patience. And if you want to ensure you're making the right financial decision, it's also important to do the math before your heart is set on a particular house.
That's not to say you should always opt for the most expensive mortgage you can qualify for. If you settle on something below your max, you'll have more wiggle room to put money into athat banks will qualify mortgage amounts that are up to 43% of a borrower's monthly income, you might not want to take on that much debt.
You should also consider what the market is like where you live, says Reyes. The "three times your salary" rule might not be realistic for people who live in areas with a high cost of living. But bigger mortgages are not always desirable, explains Reyes. If your mortgage represents too big of a chunk of your income, a lender might charge higher interest rates and other fees to compensate for the higher risk you could default.Here are four tips to help you qualify for a mortgage