Findlay Real Estate - Pre-Qualify Form
What Can You Afford?
Try the printable PDF version for best printing results.

In addition to having the cash for the down payment, closing costs and good credit history, the mortgage lender will want your house payment and other debts to conform to accepted qualifying ratios. While 28% / 36% are the most common, some loan ratios differ.

   
Column A
Column B
Annual income before taxes (gross)  
$_______________
 
Divide by number of months  
(/)12
 
Monthly gross income  
=_______________
=_______________
more than 28% of your monthly gross income on housing expense: (column B)    
x .28
Maximum monthly housing expense allowance (column B)    
=_______________
Many lenders allow 36% of monthly gross income for long-term debt:  
x .36
 
Long-term monthly expense allowance  
=_______________
 
Figure out your monthly long-term obligations below, and      
subtract it from the allowance:      
a: child support $_______________    
b: auto loans +_______________    
c: credit cards +_______________    
d: association fees +_______________    
e: other +_______________    
Total Long-term obligations =_______________    
Monthly housing expense allowance:  
=_______________
 
       
Record the smaller figure in Column A or B:  
$_______________
 
Estimating about 20% for taxes and insurance, leaving 80% for payment of mortgage (principal & interest)  
x .80
 
Allowable monthly principal & interest expense:  
+_______________
 
Divide by MONTHLY PAYMENT PER THOUSAND DOLLARS from table  
(/)_______________
 
   
=_______________
 
Multiply by 1000  
x 1000
 
Estimated Affordable Mortgage Amount  
$_______________
 

Rate 15 yr. 30 yr. Rate 15 yr. 30 yr. Rate 15 yr. 30 yr. Rate 15 yr. 30 yr.
5.0% 7.91 5.37 6.0% 8.44 6.16 7.75% 9.41 7.16 9.5% 10.44 8.41
5.25% 8.04 5.52 6.25% 8.58 6.16 8.0% 9.56 7.34 9.75% 10.60 8.60
5.5% 8.17 5.68 6.5% 8.72 6.33 8.25% 9.70 7.51 10.0% 10.75 8.78
5.75% 8.30 5.84 6.75% 8.85 6.49 8.5% 9.85 7.69 10.25% 10.91 8.97
      7.0% 8.99 6.65 8.75% 9.99 7.87 10.5% 11.06 9.15
      7.25% 9.13 6.82 9.0% 10.14 8.05 10.75% 11.22 9.34