How this calculator works
Your credit score adjusts the base rate. The loan range is what fits between a 36% and a 43% debt-to-income ratio after your existing debts and an allowance of about 6% of gross income for taxes and insurance, on a 30-year loan. Adding your down payment gives the price range.
Worked example
With the example values below: Likely loan range, $285k – $368k (home price $325k – $408k). Change any number above to run your own.
What you enter
| Input | Example |
|---|---|
| Annual pre-tax income | $90,000 |
| Monthly debt payments | $450 |
| Down payment | $40,000 |
| Credit score | 700–759 |
| Base interest rate | 6.25% |
Prequalification vs. preapproval
Prequalification is a quick estimate of what you might be able to borrow, based on income, debts, assets and credit you report yourself. It usually takes minutes and may use a soft credit check that doesn't affect your score.
Preapproval goes further: the lender pulls your credit and verifies pay stubs, tax returns and bank statements, then issues a letter stating how much they're prepared to lend. Sellers take preapproval letters more seriously, so get one before you start making offers.
What lenders look at
This calculator combines those into a loan and price range, using your score to adjust the rate and a 36% to 43% DTI band.
- Credit score and history: sets your rate and which loan programs you qualify for.
- Income and employment: usually two years of steady history, verified with W-2s, pay stubs or tax returns.
- Debt-to-income ratio: most programs cap total debt at 36% to 45% of gross income.
- Down payment and reserves: where the money comes from and what's left after closing.
Documents to gather
Having these ready speeds up preapproval: the last 30 days of pay stubs, two years of W-2s or tax returns (two years of full returns if self-employed), two to three months of statements for every bank and investment account, photo ID, and details of any other debts, child support or alimony. If part of your down payment is a gift, you'll need a gift letter.
Improving your numbers before you apply
Pay credit cards down to lower utilization, avoid opening new credit, and don't make large unexplained deposits in the months before you apply. Check your credit reports for errors at AnnualCreditReport.com. The credit score and mortgage rate calculator shows what moving up a credit tier is worth, and the how much house can I afford calculator gives a comfortable target as well as the maximum.
Frequently asked questions
What's the difference between prequalification and preapproval?
Prequalification is an estimate based on information you provide. Preapproval means the lender has checked your credit and verified your income and assets, and states in writing how much it will lend. Preapproval carries more weight with sellers.
Does prequalification affect my credit score?
Usually not. Most prequalifications use a soft credit check or none at all. Preapproval uses a hard inquiry, but multiple mortgage inquiries within a short window, typically 14 to 45 days, count as one for scoring.
How long does a mortgage preapproval last?
Usually 60 to 90 days. After that the lender will update your credit and documents before issuing a new letter.
Can I be denied after preapproval?
Yes. Changes in your job, income, credit or debts, a low appraisal, or problems with the property can all lead to denial. Avoid new credit and large purchases until closing.
What credit score do I need to get preapproved?
About 620 for most conventional loans, 580 for FHA with 3.5% down, and lender minimums around 580 to 620 for VA. Higher scores get better rates and more options.
Grow what this calculator projects.
TruthSayer AI sends quantitative stock signals across valuations, earnings and dark-pool activity, each one traded in its own funded account first.
Estimates for planning only, not financial, tax or legal advice. Tax tools use 2026 federal figures (brackets, $16,100 / $32,200 standard deduction, $19,000 gift exclusion, $15M lifetime exemption). Rates shown as defaults are examples; replace them with quotes you actually receive.