 TITLE: 5 Homebuying Myths Debunked CONTENT: Myth #2: I Don't Make Enough Money\n----------------------------------\nThe general rule for most conventional mortgage loans is that you must keep your new monthly housing costs under 28% of your gross monthly income. This includes your monthly loan principal and interest, plus property taxes, homeowners insurance and mortgage insurance if necessary. For example, if you and your spouse each earn $6,000 per month (before taxes) and are applying for a mortgage together, your monthly payment will likely need to be below $3,360 to qualify.\nKeep in mind, though, that your down payment will also be a big factor. If you've been saving for several years and have a sizable down payment, that will reduce the size of the mortgage you need—as well as your monthly payment. This can help you stay under the 28% limit.\nGetting preapproved for a mortgage can be a great first step for homebuyers as it can help clarify how much home you can actually afford. If preapproved, you'll receive a letter that states the amount of money you're authorized to borrow to buy a home. It's not a guarantee—you'll still need to complete a formal mortgage application—but it can help shape your budget so that you only look at homes that are within your price range. END