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Good Point George,

To add to that thought and this factors into the estimated return you think you might get from property value increases.

Just for FYI the Rules George is refering too:

1. You max House payment cannot exceed 28% of your GROSS monthly salary.

2. Your montly Debt Expendature cannot Exceed 36% (up to 40 sometimes - depending on the lendor) of your GROSS monthly Salary. This is all your minimum CC payments + Student Loan + Car Loan + any other Monthly payment that is Loan. It does not include Utilities and Food/Entertainment expenses.

If factors in to what return because it will limit you to what you can afford. This translates in what you can buy and where relative to your local market...remember in real-estate it Location Location Location...

One other point you mentioned you have some dings on your credit report. That will also factor into getting the loan. Be prepared to explain in writting any ding. That is any 30/60/90 day late payments reported by compaines on your Credit report, Also any recent inquires made on your credit report. This is all depending on the lender you goto.

Again Good Luck

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