We wanted to get a pre-approval letter from a broker last night to get the ball rolling on putting in offers. We both have really good credit, FICO scores > 750. We don't have any car payments, no student loan payments, we pay off our credit credits instantly pretty much, and rent currently for 1000 a month. We make about 110k gross.
Now I've been reading up online about the "28/36 rule", debt to income ratio, where 28% of your gross salary will go towards home debt and 36% of your gross salary will go into your home+other debt. I've always thought this was a pretty standard rule, but when meeting with him last night he said we should be spending about 55% of our gross income on home+debt. Is this something that is new? Is he just trying to get us to buy a bigger house for a fatter commission? Are we being told this because of our good credit history?
Thanks!
Now I've been reading up online about the "28/36 rule", debt to income ratio, where 28% of your gross salary will go towards home debt and 36% of your gross salary will go into your home+other debt. I've always thought this was a pretty standard rule, but when meeting with him last night he said we should be spending about 55% of our gross income on home+debt. Is this something that is new? Is he just trying to get us to buy a bigger house for a fatter commission? Are we being told this because of our good credit history?
Thanks!