Understanding ‘Disposable Income’ and How This Will Impact Your Mortgage Approval

Understanding 'Disposable Income' and How This Will Impact Your Mortgage ApprovalThere are few things more exciting than finding your ideal home, but with the rising cost of housing, a person’s dream home can often come with a very high purchase price. If you’re wondering how much home you can truly afford and how your cost of living will fare for your mortgage approval, here are some of the details on what you can expect when it comes to finding a home at an affordable price.

What Is Your Debt-to-Income Ratio?

Before deciding if a home is right for you, it’s important to calculate what your debt-to-income (DTI) ratio is to determine how much house you can afford. The debt amount will include any credit cards, existing mortgages and other loan payments that you pay down each month. To determine your maximum monthly payment, multiply your gross income by 0.36 and divide it by 12. This will give you the expenditure of debt, including your housing payment, that you should not exceed each month.

Determining Your Down Payment

There’s a lot of talk around the ideal amount you should put forward for a down payment, but this percentage can directly impact the amount of the house you can afford. If you are able to put down 20% of the purchase price of your home, this means your monthly mortgage payments will be minimized and this will decrease your DTI ratio. While a home may be out of your reach if you can only put 10 or 15% down, 20% down will ensure a higher amount of disposable income on a monthly basis, making your application more feasible.

Determine Your Lifestyle

While a lender may not reject your application outright if your debt-to-income ratio is higher than suggested, it’s important to know what kind of spending choices make sense for you so that you can make your monthly payments. If you have limited expenses above your mortgage and enjoy a Spartan lifestyle, it’s entirely possible that you’ll be able to manage a higher monthly amount. However, if you don’t have stable employment and are struggling each month, it may be a good idea to consider a less expensive property.

The monthly mortgage payment for your dream home may look like it’s manageable on the surface, but if your DTI ratio exceeds what is suggested, there may be issues with acceptance of your application. If you’re currently in the market for a new home, give me a call for more information – J.P. Cook – 602-320-4253.

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10220 E Cochise Drive Scottsdale, AZ 85258

$1,498,000
3 Beds
2.5 Baths
3,133 SqFt
Status Active
MLS # 6716959
Property Type Single Family Residence
Price Type --
THIS STUNNING HOME IS HUGE! THE MAIN ROOMS ARE OVERSIZED. THE YARD IS HUGE!! THE GLASS POOL SPARKLES RAINBOWS!! ITS LIGHT, BRIGHT, IMMACULATE!!!! A NATURALLY LIT 3 CAR GARAGE WITH A FAN. WALK OUTSIDE INTO YOUR BACKYARD OASIS OUT OF ALMOST EVERY ROOM. COOK IN A GRAND KITCHEN WITH IMPRESSIVE CABINETRY. THIS HOME IS AWE-INSPIRING!!!! YOU CAN HAVE LAKE ACESS, WALK IN THE PARK, PLAY TENNIS, VOLLEYBALL, BASKETBALL.... EAT & SHOP AT OUR SHOPPING CENTER, JOIN CLUBS.

8533 E Montello Road Scottsdale, AZ 85266

$1,497,000
3 Beds
3.5 Baths
3,431 SqFt
Status Active
MLS # 6777777
Property Type Single Family Residence
Price Type --
The private Encanto Norte gated community is home to this beautiful single level custom home. The primary suite is a wonderful retreat including his and her walk in closets. The split floor plan has 2 more large bedrooms with ensuite bathrooms. A great room floor plan with an updated kitchen and dining and an office/den. Gorgeous landscaping surrounds a front yard courtyard and accents the beautiful heated pool and spa in the private and spacious backyard entertaining space. The tranquil desert and mountain views complete this private and well maintained property. A new roof and new HVAC are added bonuses to this well priced home.

100 W Northern Avenue Unit 13 Phoenix, AZ 85021

$1,495,500
3 Beds
2.5 Baths
3,063 SqFt
Status Active
MLS # 6759072
Property Type Single Family Residence
Price Type --
Welcome to 100 Northern! Nestled in the prime location of North Central Phoenix, this unique, gated new community features 3 different floor plans and only 17 homesites. Experience the elegant sophistication and uncluttered feel of these thoughtful, light flooded designs, where soaring ceilings, sleek lines, and open spaces all converge to evoke a true sense of serene ambiance throughout the home. This 2 level plan features the owner's suite and all primary living on the ground floor with additional bedrooms and flex loft upstairs. Subzero/Wolf appliances, Trane cont. AC units, and tankless water heaters all set the standard for the list of included high-end features. A community pool, dog park and walking path all provide the outdoor enjoyment without the upkeep.

Munds Park AZ 86017

$1,495,000
3 Beds
6 Baths
4,000 SqFt
Status Active
MLS # 6772459
Property Type Single Family Residence
Price Type --
Currently a restaurant but was formerly a single- family residence. Could be changed back to residential and you would have a sprawling estate.

27722 E Mount Ord Drive Fort Mcdowell, AZ 85264

$1,495,000
3 Beds
2.5 Baths
3,083 SqFt
Status Active
MLS # 6667696
Property Type Single Family Residence
Price Type --
Welcome to this stunning southwestern home in Sunflower, AZ, offering the perfect blend of comfort & luxury. Nestled in a private gated community, this property boasts breathtaking mountain views and enjoys the great climate of Sunflower. This home features 3 bedrooms, 2.5 bathrooms, a bonus room, providing ample space for relaxation. The open-concept living area is perfect for hosting gatherings, while the well-appointed kitchen, complete with modern appliances and a spacious island. Outside the property spans 5.22 acres across 3 parcels, making it ideal for horse enthusiasts. The property includes grass paddocks, corrals & hay storage, Solar Electrical System, Community well, whole home off grid.

7180 E Kierland Boulevard Unit 509 Scottsdale, AZ 85254

$1,495,000
2 Beds
2 Baths
1,511 SqFt
Status Active
MLS # 6731549
Property Type Apartment
Price Type --
Welcome to Optima Kierland turn-key luxury Living. This Beautiful East Facing Unit offers spectacular views along with all the amenities & location, location! Enjoy an open floor plan with lots of space. The split floorplan offers expansive windows & walk-in closets in each suite. The outdoor patio is a wonderful place to watch the sunrise or relax in the evening. This unit includes a storage unit located on L3. Optima Kierland has amazing amenities. Rooftop Pool & Spa with scenic views of Mountains and City lights. Walking/jogging track on the rooftop. The world-class fitness center, golf simulator, 2 yoga studios, indoor basketball/pickleball & more. Shopping & Dining within walking distance.

15407 N 19th Street Phoenix, AZ 85022

$1,495,000
4 Beds
4 Baths
4,100 SqFt
Status Active
MLS # 6766954
Property Type Single Family Residence
Price Type --
PANORAMIC MOUNTAIN VISTAS surround this refined remodel in a secluded cul-de-sac w/Phoenix Mountain Preserve trail access. Savor the sunrise& sunset from covered front & back patios of the hillside ACRE+ lot dressed in new landscape. Contemporary eat-in kitchen boasts professional appliances and sleek quartz counters. Relax away the day in the main suite w/stunning views, patio exit, soak tub. Two addt'l en-suite bedrooms w/walk-in closets. Built-in bar and yard entry set the stage for fun in the family room. Bonus multi-use den. Vaulted ceilings, wide-plank flooring, neutral paints, tasteful fixtures. Masterful split plan w/central great room enjoys a wall of sliding glass exits to the expansive tiered yard. Large lawn opens to pickleball court and spacious lower level w/room for a pool. -

14503 N Adero Canyon Drive Fountain Hills, AZ 85268

$1,495,000
3 Beds
3.5 Baths
2,583 SqFt
Status Active
MLS # 6767292
Property Type Townhouse
Price Type --
Nestled in the serene enclave of Adero Canyon in Fountain Hills, this brand-new home epitomizes upscale, ''lock and leave'' living. Designed for those who appreciate both luxury and low maintenance, this residence offers sleek, contemporary architecture along with expansive windows and doors, creating a feeling of both privacy and views. The residence is sited on one of the highly preferred, elevated private lots as it backs to the preserve and hills, with no neighbors behind. High-end finishes, open concept living spaces and smart home features complete this modern oasis, making it an ideal retreat for those seeking a balance between sophistication and convenience. With two en-suite bedrooms and study/office in the main residence, plus separate entry casita and upgraded patio yard with spool, no detail has been forgotten in this picture-perfect home!

4825 N 72nd Way Scottsdale, AZ 85251

$1,495,000
3 Beds
3.5 Baths
2,235 SqFt
Status Active
MLS # 6780709
Property Type Townhouse
Price Type --
Welcome home to your jewel box in the heart of Scottsdale's high-profile 85251 zip code! This modern masterpiece sits in Royale Gardens, a lush and tranquil tree-lined community reminiscent of Old Hollywood. Completely redeveloped from the foundation up and featuring both Scandinavian and contemporary design, this custom two-story residence features a rare 3 bedroom, 3.5 bathroom layout that is both spacious and perfect for entertaining. Stunning from the finest materials used, including imported hardwood floors, floating staircase, glass enclosed showers, recessed LED lighting, marble bathrooms, and a world-class gourmet kitchen with Sub-Zero integrated refrigerator and Corian countertops.

2549 W Shinnecock Way Anthem, AZ 85086

$1,495,000
3 Beds
3.5 Baths
3,736 SqFt
Status Active
MLS # 6782138
Property Type Single Family Residence
Price Type --
STUNNING CITY LIGHT, SUNSET & MOUNTAIN VIEWS!! This updated Castile floor plan offers 3 en suite bedrooms, den & 3.5 baths. Remodeled Chef's Kitchen includes huge island, granite counters, stainless KitchenAid appliances including gas cooktop, wall ovens & built-in refrigerator. Kitchen opens to spacious family room. Primary suite includes sitting area, private patio, dual vanities, oversized tub, walk-thru shower & double walk-in closets. Backyard features new limestone pavers, synthetic turf, spa with ramada & elevated sitting area!

38424 N 69th Street Cave Creek, AZ 85331

$1,495,000
4 Beds
4 Baths
3,205 SqFt
Status Active Under Contract
MLS # 6769291
Property Type Single Family Residence
Price Type --
DON'T MISS THIS STUNNING & IMMACULATE CUSTOM HOME IN TOWN OF CAVE CREEK! STUNNING & IMMACULATE 4 BD/4 BATH/3+ CAR GARAGE IN GREAT LOCATION OF CAVE CREEK! SOARING CEILINGS!GREAT ROOM FLOORPLAN! ALDER WOOD CABINETS & DOORS;FIREPLACE IN GR;GRANITE COUNTERTOPS;CHEF'S KITCHEN WITH SS APPLIANCES!PANTRY;EAT UP BAR;EAT IN KITCHEN & FORMAL DR W/BUILT IN BEAUTIFUL HUTCH.SPRAWLING PRIMARY BR /SPLIT FLOORPLAN ~ ALL ONE LEVEL. ON DEMAND HOT WATER;UNBEATABLE MOUNTAIN & SUNSET VIEWS! BACK PATIO IS PERFECT FOR ENTERTAINMENT;BUILT IN BBQ;HEATED SPOOL;JACUZZI HOT TUB; HUGE COVERED PATIO W/TV~SITTING AREAS. LUSH LANDSCAPING!FRUIT TREES!OVERSIZED 3CG W/BUILTINS & SHOP AREA- CLOSE TO TOWN FOR ALL THE AMMENITIES YOU COULD WISH FOR!

5632 E Emile Zola Avenue Scottsdale, AZ 85254

$1,495,000
4 Beds
3 Baths
2,934 SqFt
Status Active
MLS # 6781991
Property Type Single Family Residence
Price Type --
Welcome to Your Dream Home in 85254! Back on the market and better than ever, this beautifully remodeled 4-bedroom, 3-bathroom home boasts 2,934 sq. ft. of luxury living right across from Sereno Park! This meticulously designed home features a grand, vaulted living room with authentic wood beams, creating a warm and inviting space perfect for relaxation or entertaining. Two primary suites offer ultimate privacy, each with its own spa-like bathroom and generous closets. The heart of the home extends to a stunning backyard oasis on a sprawling 1/3-acre lot. Dive into the sparkling pool, fire up the outdoor kitchen, and enjoy endless Arizona sunsets in style. Don't miss this reimagined gem - set your private tour today and see what makes this home so special!

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