52 Buyer Qualification
To calculate the maximum loan for which a buyer can
qualify, first enter the term of the loan, the interest rate,
the income/debt ratio used in your area, if not already
entered (see page 18), and one of the following:
•
The annual tax and insurance percentages applicable
to the property (
#
Q
and
#
Z
).
•
The total annual tax and insurance dollar amount
(
#
E
).
Then press
?
to start the model. You can exit the
Buyer Qualification model at any time by pressing
!
.
Name
Meaning
INC=
Enter monthly income and press
j
.
DBT=
Enter monthly debt and press
j
.
DN%=
Enter the down payment amount, or enter a
two-digit number for the down payment
percent, and then press
j
.*
PITI=
The total monthly payment including principal,
interest, tax, and insurance.
PMT=
The monthly loan payment for which the buyer
should qualify.
QLA=
The loan amount for which the buyer should
qualify.
QPR=
The sales price for which the buyer should
qualify.
DN$=
The down payment amount (useful if you
entered down payment as a percent).
* The calculator accepts any number greater than 99 as a
down payment dollar amount.
Buyer Qualification: Maximum Loan Amount
You can calculate buyer qualification in one of two ways:
by determining the maximum amount the buyer can
afford to borrow, or by calculating the minimum income a
buyer must have. This page describes the model based
on loan amount, while the following page discusses the
model based on minimum required income.
Values Used by
Qualifying Loan
Amount Model
