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Mortgage Pre-Qualification Calculator

Mortgage Pre-Qualification Calculator
Fixed Rate Loans
Before using this calculator, please READ THIS

Information Input

Type Of New Loan/Property To Be Purchased:

Household Gross Monthly Income $

Results
Results Are Approximate

A) Maximum New Property Loan Amount	$
Estimated Cash Needed To Close...
B) Minimum Down Payment Amount	$
C) Estimated Closing Costs (Purchase Price [E] multiplied by %)	$
D) Total Estimated Cash Needed To Close	$
E) Maximum New Property Monthly Payment	$
F) Maximum New Property Purchase Price (A + B)	$
The above results were calculated using the ratio of . For comparision, the Maximum New Property Purchase Price using the ratio of is . Remember, the LOWEST Maximum New Property Purchase Price between the FRONT and BACK ratio is used.

Notes and Assumptions

This calculator is for APPROXIMATION only. This is not an offer to lend. Accuracy of the results is not guaranteed. The use of this calculator and the results of this calculator in no way signifies that you will be approved for a loan or that you will be approved for a loan in the amount approximated by this calculator. Each individual lending situation is different and you should always consult with a qualified professional regarding your mortgage needs. In many cases, a lender can work with you to approve a loan that the calculator has approximated you would not qualify for.
This calculator is designed to use what are sometimes referred to as "Front" and "Back" qualifying ratios. The Maximum New Property Purchase Price is calculated using the "Back" ratio, and then it is calculated using the "Front" ratio. The LOWEST number obtained for the Maximum New Property Purchase Price is the result.
To further explain pre-qualification calculations: In general, if other credit and loan requirements are met, you will qualify for a loan amount if your actual monthly housing expense and your actual monthly long-term debt are at or below your allowable monthly housing expense and your allowable monthly long-term debt. Allowable Monthly Housing Expense is calculated by multiplying the "Front" ratio by the Household Gross Monthly Income. Allowable Monthly Long-Term Debt is calculated by multiplying the "Back" ratio by the Household Gross Monthly Income. The "Back-End" is calculated first, subtracting your monthly long-term debt payments from the Allowable Monthly Long-Term Debt. The remainder can be used for a new monthly property payment (Maximum New Property Monthly Payment). If the remainder is higher than the "Front-End" (Allowable Monthly Housing Expense), then the "Front-End" is used as the new monthly property payment (Maximum New Property Monthly Payment). Other calculations of the results are then based on the Maximum New Property Monthly Payment. The actual process and the actual calculations will vary by lender. If you have any questions, please consult a qualified professional.