DwellWell

Pre-Qualifying Calculator
As buyers begin to show interest in your home, you’ll need to sort through those who can get approved for a loan and those who can’t. You don’t want to be tied up in a contract with a buyer who in the end will have trouble financing the purchase. The best way to do this is by working with a lender. A lendor can pre-qualify buyers for you. For information on working with a lender, see "Pulling In the Pros" in our Seller's Guide. If the buyer has shared personal financial information with you, this form will help you to determine whether that buyer can comfortably afford your home.* Begin by clicking in the first entry field and follow the instructions that appear in the Help box. To start over, simply click "Reset."
Gross annual income:		Instructions & Explanations
Monthly debt payments:
Down Payment:
Annual Interest Rate:
Monthly insurance:
Monthly property tax:
Length of the Mortgage:

? Downpayment:		Explanations
? Loan Amount:
? Home Price:
? Monthly Payment:

* This Mortgage Qualification Calculator requires a minimum downpayment of 5% of the mortgage. Amounts entered in the downpayment field are first reduced by 2 closing points, and then used to determine mortgage size and home price.

Please note that the payment-to-income ratio is set to 33% and the debt-to-income ratio is set to 41%.

Before determining how much a buyer can spend on a new home, the buyer should sit down with a mortgage broker who can walk them through their options and help them define their alternatives.