Buyer Pre-Qualification Worksheet

Example:

Actual:

For a family with gross annual income of $50,000 and monthly long-term obligations of $600 (installment debt, auto loans, credit cards, child support, etc.)

A.

Gross Annual Income

(Before Taxes)

$50,000

A.

Gross Annual Income

(Before Taxes)

___________

B.

Gross Monthly Income

A/12

$4,167

B.

Gross Monthly Income

A/12

___________

C.

Monthly Allowable Housing

Expense and Long-Term Obligations

$4,167 multiplied by 36%

$1,500

C.

Monthly Allowable Housing

Expense and Long-Term Obligations

B multiplied by 36%

___________

D.

Monthly Allowable Housing Expense

$1,500 minus $600

This figure should not exceed 28% of B.

$900

D.

Monthly Allowable Housing Expense

C minus monthly long-term obligations. This figure should not exceed 28% of B.

___________

E.

Estimated Mortgage Amount

Interest rate factor at 7% equals $6.65 per thousand (see next page).

$135,000

E.

Estimated Mortgage Amount

(Find Interest Rate factor on next page.)

___________

F.

Estimated Home Price

With a 5% down payment and 95% Loan-To-Value, divide $135,000 by 95%.

$142,400

F.

Estimated Home Priced

Subtract the downpayment from 100% to find the Loan-To-Value, then divide E by the LTV.

___________