John Farino, CPA - Mortgage Qualification

Qualification Worksheet For A Conventional Mortgage
IMPORTANT:	This worksheet calculates, based on your financial situation, the amount of conventional mortgage proceeds for which you may be approved by a mortgage lender. It provides a rough estimate for conventional, fixed-term mortgages. Loan terms vary depending on type of mortgage and lender policies. Consult a professional lender for exact data.
Instructions:
	1) 2) 3) 4) 5) 6)
© 1999 John Farino, CPA - 1800Net, LLC

Income Information
Enter Your Gross Income (before taxes). Include income from all sources. Investment income includes interest and dividends. For each source, select the periodic Frequency that you receive the amount entered. You may change category names.
Category	Periodic Amount	Frequency	Annual Total
	$		$
	$		$
	$		$
	$		$
	$		$
Annual Income Grand Total			$

Debt Information
Enter Periodic Debt Payments for all classes of Long-Term Debt. Long-Term Debt is any debt with repayment terms exceeding one year. For each class of debt select the periodic Frequency that you make payments of the amount entered. You may change category names.
Category	Periodic Amount	Frequency	Annual Total
	$		$
	$		$
	$		$
	$		$
	$		$
Annual Debt Grand Total			$

Tax and Escrow Information
Enter Real Estate Taxes, Insurance and Other Escrow payments that will be related to this mortgage. For each amount, select the periodic Frequency that you will be making these payments. You may change category names.
Category	Periodic Amount	Frequency	Annual Total
	$		$
	$		$
	$		$
	$		$
	$		$
Annual Tax and Escrow Grand Total			$

Debt Service and Housing Cost Ratios

Mortgage Companies usually qualify you for monthly mortgage payments no higher than the lesser of Debt Service Ratio or Housing Cost Ratio. By default, a total debt service ratio of 0.36 and a housing cost ratio of 0.28 has been used, which are often-used standards for conventional mortgages. Check with your mortgage lender. If different ratios apply in your case, you may change these values by entering a new value below.

The Debt Service limiting amount is calculated by multiplying your total monthly income by the Debt Service Ratio and then subtracting your monthly debt payments from that result.	The Housing Cost limiting amount is calculated by multiplying your total monthly income by the Housing Cost Ratio.
Debt Service Ratio	Housing Cost Ratio

Mortgage Terms (Interest Rate and Duration)
Annual Interest Rate Enter your lending institution's interest rate as a decimal. (8.5% = .085)	Mortgage Term (in months) Enter the mortgage term in months. (30 years = 360 months)

Results
Mortgage Amount For Which You Should Qualify $
Monthly Mortgage Payment $	Total Monthly Payment Including Escrows $


Copyright © 1995-2003 John Farino, CPA - 1800Net, LLC