Something that seems to get overlooked is that the ratio seems to forget about investing.A freind of mine qulaified for a loan within $27% of his income. Of course, he is used to maxing out his 401K. Unfortunately, he did not take this into consideration until after closing. Even though he was qualified - he moved in - and found himself cash poor - and could not contribute to retirement the same amounts that he had enjoyed before.In short - make sure you consider everything you want to do after buying your house. Were you planning on buying a new car? Invest in college savings and retirement accounts, etc.? These important items seem to be neglected when calculating these all-important ratios, and people may end up moving into their dream home and not being able to afford anything else.
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra