Home Buyers >> Decisions (Cont.)

Two formulas used by a variety of lenders are:

  ___    (P.I.T.I)____                  25-35%
  Gross Monthly Income      =      or less

 (P.I.T.I) + All Monthly Debts                45%
    Gross Monthly Income            =      or less

(P.I.T.I. represents the principle, interest, taxes and insurance that you will pay on your mortgage loan.)

For more specific figures and details, ask your Real Estate Professional to help prepare a "pre-qualifying" estimate for you.