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Old 09-03-2009, 08:44 AM   #5
Chuck Norris
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It depends on the location but if it is local my professional opinion is that you should wait and not buy anything right now.

If you still wish to do so, your best bet is to add up your gross income and then figure out all your debts. The banks will not consider anything if your debt ratio is above 40%

So for example, if you gross $10,000 a month the most the bank will let you pay is $4,000 a month.

If your current mortgage is $2,000 a month and you have a car loan (or some kind of loan) for $500 a month, the most you can borrow is based on your payments which would be a max of $1500.

You can run the numbers yourself but that's what the bank will consider.
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