Have you heard of the 28/36 rule?

Lenders generally follow the 28/36 rule when they are looking at mortgage applications. This rule lets them decide if you really can afford the property you want to buy.

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This means that you should be able to set aside up to 28% of your monthly gross income for a mortgage payment, property taxes, and insurance.
Notice that the 28% is the highest percentage of your gross income that should be used to cover basic housing expenses. As you know, your net and gross incomes are certainly not the same. The lender does not consider your utility bills or lawn maintenance when running the numbers, but you have to think about these things.

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For a mortgage lender to feel comfortable lending to you, they want to see that your total debt payments add up to no more than 36% of your gross income. Again, this is the highest percentage, so if your total debt is well under 36% of your gross income you will be even more attractive to lenders.

These rules are not absolute, however. But knowing them can help you if you are thinking about buying a home. Crunch the numbers so you know where you stand before you make an appointment with a lender. Click the title of this post to go to the Homes Buy Day website where you will find several useful mortgage calculators.