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2: Size Up Your Housing Situation

Size Up Your Housing Situation

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Lenders and landlords will use different guidelines, but they all will want to know the same thing: Can you afford the payment and will you make it on time? They will look at the following to determine your creditworthiness:

  • Income from all sources
  • Financial obligations – including other loans, credit cards, leases, etc.
  • Credit history
  • Checking and savings account balances
  • Debt-to-income ratio (the percentage of your gross income taken up by recurring financial obligations such as loans, leases, revolving credit, child support, etc.)

What Makes a Good Borrower?

Lenders are looking for the same qualities that you look for when you lend someone something. If a friend borrows a book, you hope they return it in good condition. If you lend a family member money, you hope that he or she will pay you back on time, according to terms that you both agree on. 

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