Prequailfy Form

Provided By: Bobbie and Bobby Graham
The Daughter and Father Team (281) 997-2626

Mortgage Prequalifaction Worksheet
A good rule of thumb is that your total mortgage payment, including taxes and insurance, should not exceed 25-28% of your gross monthly income (before income tax deductions).
A: Gross monthly income	$ x0.28	= $
The mortgage payment for which you may be approved will be limited by your long-term debt. The total of your monthly payments on a long-term debts plus your proposed mortgage payment should not be more then 36-45 percent of your gross monthly income.
B: Gross monthly income	$ x0.45	= $
C: Monthly payments on long-term debt		- $
D: Subtract Line C from B		= $
E: Enter the lesser amount of lines A and D		$
Now use the following to calculate your monthly payment. Depending on compensating factors, you may qualify for a greater loan amount than indicated.
Purchase price	$ (adjust to desired amount)
Less down payment (preset 5%)	$ (adjust to desired amount)
Proposed mortgage loan amount	$
Interest Rate	$ %
Term of Loan	$ Years
Your monthly payments.
Principal and Interest	$
Real Estate Taxes	$ (.02 x purchase price) / 12
Hazard insurance	$ (.005 x purchase price) / 12
Mortgage insurance Premium**	$ (.006 x amount) / 12
Estimated monthly mortgage payment*		= $
Note: Your financial standing may allow for a greater loan amount than indicated.
**Only required on conventional loans with a loan amount in excess of 80% of the appraised value. Mortgage Insurance Premium (MIP), also referred to as Private Mortgage Insurance (PMI), is a credit risk insurance that protects the lender. The cost will depend on the loan type and the loan-to-value ratio.