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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.
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