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Most lenders will calculate this information
for you, free of charge and with no obligation.
They will provide you with an approximate amount
you may be able to borrow. Some lenders will go
a step further, offering a firm pre-purchase loan
commitment before you buy a home. Having a pre-purchase
loan commitment is like being a cash buyer and
may give you more bargaining power when shopping
for a home.
Use this work sheet to find your approximate monthly debt
ratio, including a borrowing limit. Your new home
price range is probably right if your debt ratio
is below 36%. If it is right at 36%, you are probably
right at the upper limit of your price range and
should consider whether unplanned expenses might
prevent you from making your new house payment.
If your debt ratio exceeds 36% you need to reduce
your debt, increase your down payment or reduce
the price you pay for your home.
Fill in the empty boxes
below to determine your debt ratio. Those fields
that already have a zero will be calculated. Do
not use any non-numeric values such as commas,
dollar signs, etc.
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Selling A Home
Selling A Home
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