Pre-qualification calculator for borrowing money for your home.

Affordability

Associated
Brokers

Greenville, NC

If you plan to borrow money for a purchase, prequalifying for a loan is in your best interest. We recommend that you sit down with a lender even before you find a house to buy. We will be happy to make an appointment with a lender for you or give you phone numbers to call. There is no charge for prequalifying, and you are then assured that when you find the home you wish to buy, you can afford it and funds are available for the purchase.

One of the things that you'll want to do is "pre-qualify" yourself by determining just how much home loan you can afford with an estimate of your maximum monthly house payment. By knowing the down payment amount and your maximum monthly house payment, you'll know which homes fall into your price range. Use this worksheet to estimate your monthly payment:

STEP ONE
Downpayment will be:		10 percent or more			Income Ratio = 28%		Total Debt Ratio = 36%
		less than 10 percent			Income Ratio = 25%		Total Debt Ratio = 33%

STEP TWO
Total Gross Monthly Income (self and any co-borrowers):	$
	x Income Ratio
Estimated Maximum Monthly House Payment (principal, interest, taxes and insurance):	= *

STEP THREE
1. Multiply your total gross monthly income by the Total Debt Ratio Total Gross Monthly Income (self and any co-borrowers):	$
	x Total Debt Ratio
	(A) = $
2. Add up these expenses:
Monthly Installment Debts (include all debts with 10 or more payments remaining, e.g., car, credit cards, child support/alimony):	(B) = $
3. Subtract (B) from (A):
Estimated Maximum Monthly House Payment (principal, interest, taxes and insurance)	* (C) = $

* NOTES:
If there is a difference between the amounts of your Estimated Maximum Monthly House Payments in Step One and Step Two, use the lesser of the two as your guideline.

Before a lenders makes a decision on your loan, additional information will be requested (credit history, other income sources, etc.)

Formulas and ratios may vary based on loan type and lender.

105 Commerce Street, Greenville, NC 27858
Telephone: 252-756-8410 | Toll-Free: 1-800-334-1135
abr@greenvillenc.com