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TheMortgageEstimator.com

Mortgage Preapproval Calculator

Estimate how much you might be preapproved for based on your income, debts, credit score, and other factors lenders consider.

Mortgage Preapproval Calculator

$30,000$500,000
$0$5,000
500850
$0$200,000
0.1%10%

Preapproval Estimate

Estimated Maximum Loan Amount$0
Estimated Home Price You Can Afford$0
Estimated Monthly Payment$0
Housing-to-Income Ratio0.0%
Debt-to-Income Ratio0.0%
Down Payment$60,000
Down Payment Percentage0%

This is an estimate only. Actual preapproval amounts depend on lender criteria, your credit history, and other factors.

Understanding Mortgage Preapproval

Mortgage preapproval is an important first step in the home buying process. It gives you a clear picture of how much home you can afford and shows sellers you're a serious buyer.

What Lenders Look At

When determining how much to preapprove you for, lenders typically evaluate these key factors:

Income

Your gross monthly income from all sources

Debt-to-Income Ratio

Your monthly debt payments relative to your income

Credit Score

Your credit history and FICO score

Down Payment

How much money you can put down upfront

Employment History

Stability of your employment and income

Assets

Savings, investments, and other assets you own

Debt-to-Income Ratios Explained

Lenders use two types of debt-to-income (DTI) ratios to determine how much mortgage you can afford:

  • 1
    Front-End Ratio: The percentage of your gross monthly income that goes toward housing costs. Most lenders prefer this to be 28% or less.
  • 2
    Back-End Ratio: The percentage of your gross monthly income that goes toward all debt payments, including housing. Lenders typically prefer this to be 36-43% or less.

Preapproval vs. Prequalification

Prequalification is an informal, preliminary estimate of how much you might be able to borrow based on information you provide.

Preapproval is a more formal process where the lender verifies your financial information and credit, resulting in a conditional commitment to lend a specific amount.

Important Note

This calculator provides an estimate based on typical lending criteria. Actual preapproval amounts may vary based on:

  • The specific lender you choose
  • Current market conditions
  • A detailed review of your complete financial picture
  • Property-specific considerations

For an official preapproval, contact a mortgage lender who will perform a detailed analysis of your finances and credit.