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Use The Prequalifying Calculator

Get a snapshot of what your housing purchasing power is.

AARE • Homebuyer Tools

Homebuyer Prequalifier

A fast, consumer-friendly estimate of how much home a buyer may be able to afford based on qualifying income, current monthly debts, estimated rate, and conservative underwriting guardrails. Designed for California buyers, with editable assumptions for down payment, closing costs, taxes, insurance, and debt-to-income ratios.

Buyer Inputs

Enter fair, buyer-provided estimates. This tool is intentionally transparent so assumptions can be adjusted without hiding the math.

Annual qualifying gross income

Use income that a lender could reasonably count for qualification, before taxes and deductions.

Current monthly debt payments

Auto, student, credit card minimums, personal loans, alimony, child support, and other recurring debts.

Mortgage interest rate (%)

Interest rate only. APR and points can vary.

Loan term

Guideline profile

This estimate solves for the highest purchase price that still fits within the selected debt-to-income constraints after accounting for projected principal, interest, taxes, insurance, and HOA.

Estimate ready

Estimated max purchase price

$525,451

Based on the selected underwriting profile and projected monthly housing payment.

Estimated loan amount

$499,178

Purchase price minus the selected down payment percentage.

Target monthly housing payment

$3,875

The tighter of the front-end housing ratio and back-end DTI limit.

Cash needed to close

$39,409

Down payment plus estimated closing costs and optional extra cash.

Estimate breakdown

Gross monthly qualifying income: $12,500
Monthly debt obligations: $950
Front-end payment cap: $3,875
Back-end payment cap: $4,425
Selected housing budget: $3,875
Down payment amount: $26,273
Estimated closing costs: $13,136
Estimated taxes + insurance + HOA: $679
Estimated principal + interest: $3,196
Total monthly housing payment: $3,875

Formula used: Affordable Housing Payment = lesser of (Front Ratio × Gross Monthly Income) and (Back Ratio × Gross Monthly Income − Current Monthly Debts). The module then solves backward from that payment to an estimated loan amount and purchase price using your rate, term, taxes, insurance, HOA, down payment, and closing-cost assumptions.

This is a planning estimate only, not a credit decision, underwriting approval, or loan commitment. Actual qualification depends on credit, assets, reserves, documentation, property type, occupancy, taxes, insurance, HOA dues, lender overlays, and final automated or manual underwriting findings. For consumer clarity, the assumptions above remain editable rather than hidden.