So, if your debt is more than 12% (41% - 29%) of your gross monthly income, the amount OVER 12% will reduce what you qualify for dollar for dollar. If you have a lot of debt, you qualify for less.
Getting prequalified is a great first step.... see here... http://hometeamnj.com/first-time-home-buyers-start-here/
A good agent can help with the preliminary questions like this and then refer you to a good lender when needed. An inexperienced or bad agent doesn't know anything about how to qualify for a mortgage.... pick your agent wisely, they'll be giving you advice and guidance thru the whole process.
I hope that's helpful... if so, click the "thumbs up" below
Joe Montenigro REMAX Home Team
Broker, GRI (856)374-2800 x106
Serving Gloucester Twp, Washington Twp & South Jersey Real Estate Markets
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Best thing for you to do is talk to a good mortgage company. They can help you and see exactly what program would be best for you and see what you qualify for.
If you would like some suggestions, feel free to email me!