Realistically assessing your finances upfront will streamline the home financing process.
1. Monthly Income
Wages, salaries, business income after expenses ___________
Interest, dividends, or rental income ___________
Other income:
(alimony, child support, pensions, or Social Security) ___________
Total Monthly Income (Step 1) $ _____________
2. Monthly Expenses
Monthly Credit Card Payment ___________
Auto Loan ___________
Student Loans ___________
Monthly Payments (other than a mortgage) ___________
Alimony or child support you owe ___________
Total Monthly Expenses (Step 2) $ _____________
3. Amount Available for Monthly Housing Expense
Total Monthly Income (Step 1) ___________
Minus total Monthly Expenses (Step 2) ___________
Total Amount Available for Monthly Housing Expenses
(Step 3) $ _____________
4. Monthly Estimated Housing Expense
Mortgage loan payment (principal and interest) ___________
Property Taxes ___________
Mortgage Insurance ___________
Homeowner’s Insurance (liability, flood, fire) ___________
Other (homeowners association dues HOA) ___________
Total Monthly Estimated Housing Expense (Step 4) $ _____________
5. Qualifying Ratios
**You must stay below 45% Debt to Income ratio**
(Total Step 2 + Total Step 4) / Total Step 1 (Step 5) _________ %
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