Select A Department:

Courses in this Department

How Ready Are You to Buy a Home?

Determining Your Dream Home and Finding It!

Factory Built Homes Are Worth a Look

Purchase Manufactured Homes with FHA Loan

How to Buy a Foreclosed Home

Pros and Cons of Corner Lots

Know the Neighborhood Before You Buy

Tune in to an Open House on the Radio

Finding a Qualified Broker or Agent

Shopping for a Loan and Choosing a Lender

How to Improve Your Credit

How to Survive the Loan Application Process

Making an Offer and Signing Contracts

Cancel Your Contract in 3 Days

Understanding the Closing/Settlement Process

Choosing Home Inspection and Settlement Professionals

Double Check Your New Home - The Walkthrough

Know Your Consumer Rights

Seniors Have Many Housing Opportunities

Preparing for the Big Day -- Relocating Moving

Make Your Home Your Castle - Cost Effective Redecorating Ideas


Look at Yourself Like a Lender

What do they look for?

Two Numbers Rule
This is what lenders look for...

Generally speaking, a lender will look at two numbers in deciding how much you can afford:

  • Your monthly housing costs (including mortgage payment, taxes, and insurance) and,

  • Your total debt, including monthly housing costs plus your long-term debts (student loan, car loan, credit cards or other installment debt).

The guideline is you should spend no more than 28% of your monthly gross income (before taxes) on housing expense. That can include business income, disability or retirement benefits, alimony, child support, etc. In addition, your total monthly debt payment, including housing and other long-term debts, should be no higher than 36% of your monthly gross income.

Chart the Numbers

Print out this chart and fill it in to understand how a lender evaluates you for a mortgage.

Home Mortgage Qualifying Chart

Single borrower's gross annual salary


Total monthly income
(annual salary divided by 12)


Total monthly income
(annual salary divided by 12)


Monthly gross income


Multiply by 28%


Allowable monthly housing costs


Home purchase price


Down Payment


Mortgage loan amount


30-year loan/8% interest -
monthly payment (PI)


Taxes and insurance


Total monthly housing costs


Monthly gross income


Multiply by 36%


Allowable total monthly debt


Other monthly debts:


Car payment


Credit cards


Other monthly debts


Total monthly housing costs


Total monthly costs


Are You Ready to Crunch the Numbers Now? Here is your opportunity.

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