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

Borrower

Co-borrower

TOTAL GROSS MONTHLY INCOME

MINIMUM MONTHLY DEBT

Credit cards

Car loans or leases

Payroll/401(k) loan payments

Student loan(s)

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:

35%

Payment history: Your consistency in making on-time payments.

30%

Total amount owed: Includes the ratio of what you owe to your available credit amount.

15%

Length of credit history How long you’ve been using credit.

10%

New credit account and inquiries: Accounts you’ve recently opened and creditor inquiries.

10%

Types of credit in use: Includes credit cards, installment loans, mortgages, etc.