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Qualifying Ratios
Qualifying Ratios - A ratio that compares a borrowers total anticipated housing expenses and current financial obligations to ensure that they will be able to meet the total amount of their expenses if approved for a loan. A lender will use qualifying ratios when determining whether or not you will qualify for a mortgage amount. The ratio is expressed with two numbers, a "front" number and a "back" number. The front number represents your monthly housing costs and the back number shows the housing costs in addition to your other monthly debts.
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