Evaluating Your Financial Resources
Below is a helpful worksheet designed to assist you in Evaluating Your Financial Resources when you are ready to make the step towards buying a home.
STEP 1: DETERMINE NET MONTHLY INCOME
| Gross Monthly Income | |
| Gross base pay (All wages and salaries other than overtime) | $ |
| Net profit (from business) | $ |
| Interest and dividends | $ |
| Other income | $ |
| Total Gross Income (add) | = |
| Deductions | |
| Income tax (federal, state and local) | $ |
| Social Security/retirement | $ |
| Insurance (life, health, property) | $ |
| Other (charities, etc.) | $ |
| Total Deductions (add) | = |
| 1. Net Monthly Income (Subtract Total Deductions from Total Gross Income) |
$ |
| Installment payments on car or furniture | $ |
| Other debt, over 11 months | $ |
| Total long-term debt (add) | = |
| 2. Subtract long-term debt from Net Monthly Income. | $ |
| Food, beverages (home and work) | $ |
| Transportation/auto expenses | $ |
| Education | $ |
| Medical/dental care | $ |
| Clothing and grooming | $ |
| Insurance (life and health) | $ |
| Child care | $ |
| Gifts and charity | $ |
| Entertainment and recreation | $ |
| Savings | $ |
| Other | $ |
| Total monthly non-housing expenses (add) | = |
| 3. Subtract non-housing expenses from total of Step 2 | $ |
| Proposed mortgage payment | $ |
| Allowance for property taxes | $ |
| Allowance for utilities (heat, water, phone, electricity) | $ |
| Allowance for maintenance, furnishings | $ |
| Allowance for insurance | $ |
| 4. Total monthly housing expenses (add) | = |
| Compare estimated monthly housing expenses (Step 4) with income available (Step 3). If income available from Step 3 does not equal or exceed monthly housing expenses, then you must re- evaluate your budget and resources. | |
|
Total from Step 3 $ |
Total from Step 4 $ |
