Tell us your goals
Share your timing, target price, down payment, and property plans.
Mortgage tools
Know the numbers. Move with confidence.
Understand debt-to-income ratio, cash to close, and the path to preapproval—without needing to know the mortgage vocabulary first.
DTIINCOME ALREADY COMMITTED
CTCTOTAL DUE AT CLOSING
4PREAPPROVAL STEPS
Debt-to-income ratio
How much income is already committed each month?
DTI compares your expected total monthly home payment and other required debt payments with the income you earn before taxes and deductions.
The calculation in plain language
New home payment + other monthly debts
÷ monthly income before taxes × 100
÷ monthly income before taxes × 100
“Income before taxes” is often called gross income. It is the larger amount before payroll deductions—not the smaller take-home amount deposited into your bank account.
Income before taxesYearly salary ÷ 12, or monthly earnings before deductions.
New home paymentMortgage, property taxes, insurance, and HOA dues.
Other debtsCar or student loans, card minimums, required support.
Usually leave outFood, utilities, phone service, and subscriptions.
Cash to close
It is not just the down payment.
Cash to close is the total money due on closing day. It starts with your down payment and other upfront costs, then subtracts deposits and credits already counted.
Money you may need
- Down paymentThe part of the price you pay upfront
- Loan and buying costsLender, appraisal, title, and recording charges
- Taxes and insurance upfrontPrepaid items and initial escrow funding
Already counted
- Your offer depositEarnest money credited toward the total
- Seller or lender creditsEligible credits that reduce what you bring
The full amount dueCash to Close
Simple example: $40,000 down payment + $8,000 other closing money − $5,000 already paid or credited = $43,000 cash to close. Your Loan Estimate and final Closing Disclosure show the official figures for your transaction.
The preapproval process
A simple path from questions to a clearer plan.
Preapproval is a preliminary review of your income, assets, debts, and credit. It can help you understand a potential range, but it is not a guarantee of final financing.
Complete the basics
Submit income, asset, debt, and credit information securely.
Review your options
Compare the available paths and understand the trade-offs.
Shop with clarity
If eligible, receive a letter and move forward with a stronger plan.
Ready when you are
Start preapproval