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There can be a lot of uncertainty when you apply for a loan to buy a home. It’s to your advantage to understand how lenders look at applications. A key factor is the loan-to-value ratio, which measures the size of your mortgage compared to the market value of the house you are buying. Most lenders want that ratio above 80%. A sizable down payment can help you reach this goal. As you use this calculator, you will see your monthly debt load and salary are also considered when lenders determine your maximum mortgage size.
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