HOW MUCH CAN YOU AFFORD?
When you’re searching for a new home, it’s a good idea to calculate how much money you might be qualified to borrow and your monthly mortgage payment. Complete the following worksheet to figure a quick estimate of how much you may be able to afford.
(These calculations are based on salaried borrowers; self-employed borrowers may have other factors to consider.)
GROSS MONTHLY INCOME
TOTAL GROSS MONTHLY INCOME
MINIMUM MONTHLY DEBT
Car loans or leases
Payroll/401(k) loan payments
Other (child support, alimony, etc.)
TOTAL MINIMUM MONTHLY DEBT
YOUR FICO CREDIT SCORE
This score is a key factor in determining the terms you’ll receive when financing a home. Your score, which ranges from 300 to 850, is based on these factors:
Payment history: Your consistency in making on-time payments.
Total amount owed: Includes the ratio of what you owe to your available credit amount.
Length of credit history How long you’ve been using credit.
New credit account and inquiries: Accounts you’ve recently opened and creditor inquiries.
Types of credit in use: Includes credit cards, installment loans, mortgages, etc.