Let’s begin with the 28/36 rule that many lenders use it to determine your credit eligibility.
The “28” refers to the percentage of your gross monthly household income that is to be allocated towards housing costs each month, including principal, interest, taxes and insurance. The “36” represents the total debt that you have. Your debt should not exceed 36 percent of your total income.
As long as your monthly debt: car & credit card payments or student loans doesn’t exceed the 36 percent then your in a better position to qualify for the loan amount that meets your “28” calculation. I cannot stress the importance of having an experienced and creative loan officer. Always consult your Realtor as they have already interviewed and worked with several lenders. They know who the good ones are!