Annual Pretax Income - Your total earnings before taxes and deductions. This helps determine how much home you can afford by estimating your ability to make monthly mortgage payments. Lenders and financial advisors use this to assess loan eligibility.

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Debt Payments (Monthly) - The total amount you pay each month for existing debts, such as credit cards, car loans, and student loans. This impacts your debt-to-income (DTI) ratio, which lenders use to evaluate your ability to take on a mortgage.
 

Recurring Expenses (Monthly) - Ongoing costs that aren’t considered debt, such as utilities, childcare, or insurance premiums. Factoring these in provides a more realistic picture of your financial commitments and helps ensure affordability.
 

Down Payment - The upfront amount you pay toward your home purchase. A higher down payment can lower your loan amount, reduce monthly payments, and help you avoid private mortgage insurance (PMI). Lenders consider this when determining loan terms.
 

Interest Rate - The percentage charged on your mortgage loan. A lower interest rate means lower monthly payments and less money paid over time. Interest rates vary based on market conditions, credit score, and loan type.
 

Loan Term - The length of time you have to repay your mortgage, typically 15 or 30 years. A longer term results in lower monthly payments but more interest paid over time, while a shorter term means higher payments but less interest overall.