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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5422 S Luiseno Boulevard Gilbert, AZ 85298

$599,900
4 Beds
2 Baths
2,108 SqFt
Status Active
MLS # 6758778
Property Type Single Family Residence
Price Type --
Check out this Beautiful Single Level Home Located in the Prestigious Community: The Bridges at Gilbert! This Great Room Floorplan Home Features 3 Bedrooms, 2 Baths, Den and 3 Car Garage. The Kitchen Includes an Island, Granite Countertops, Stainless Steel Appliances, 2 Built in Ovens, Gas Cook Top and Beautiful Raised Panel Cabinets with Crown Molding! Master Suite Includes a Spacious Bathroom with a Dual Vanity, Separate Shower/Tub and Large Walkin Closet! Step into the Backyard with New Artificial Grass and Large Covered Patio, Perfect for Entertaining or Enjoying as a Family! Do Not Miss Out!!

3010 E County Down Drive Chandler, AZ 85249

$599,900
3 Beds
2 Baths
2,185 SqFt
Status Active
MLS # 6783660
Property Type Single Family Residence
Price Type --
Welcome home to this 3 bedroom plus office, 2 bath, 3 car garage beauty in the coveted 55+ Solera at Lone Tree Golf Course Community. Enjoy the privacy of being at the end of the street, with the north/south facing maintenance free yard. Step inside to 10 ft ceilings, fresh paint, plantation shutters, new carpet, & upgraded light fixtures, making it move in ready. The great room is open to the kitchen that features an island for entertaining & dining area. Bonus: all appliances stay. Large primary bedroom offers a sitting area, while its bathroom has dual sinks, jetted tub, walk in shower & oversized walk in closet. The split floorplan offers ample size secondary bedrooms. Plenty of closet storage throughout. This home checks all the boxes.

20613 W Hazelwood Avenue Buckeye, AZ 85396

$599,900 - 3Br/3Ba -  for Sale in Verrado Victory District Phase 1, Buckeye
Open House
$599,900
3 Beds
2.5 Baths
2,170 SqFt
Status Active
MLS # 6768357
Property Type Single Family Residence
Price Type --
Nestled along tree-lined streets of Phase One in Victory at Verrado is this lovely Crest Plan by Lennar with OWNED SOLAR! Imagine having a cup of coffee as you take in the relaxing view of Hazelwood Park from the front Porch. Inside you will discover a den/bedroom #3 with Murphy bed, a convenient half bath, spacious secondary office (option by builder) w/barn door, secluded bedroom #2, and a full bathroom #2. The generous owner's suite has a large bedroom, and the bathroom features double vanity sinks, a no-step tiled shower, and a custom closet for all your storage needs. The heart of the home, the kitchen, is a chef's dream with its oversized island—ideal for entertaining—enhanced by striking cabinetry, elegant countertops, and a stylish backsplash. Recent updates include a GE refrigerator, Bosch dishwasher, washer, dryer, and security system. The great room seamlessly connects indoor and outdoor living with a center-pull four-panel sliding glass door. Step outside to the expansive travertine patio, where you can unwind in the jacuzzi or savor breathtaking mountain views around the fire pit, complete with a 70-foot gas line for easy access. The covered patio, featuring a retractable awning, provides a perfect retreat from the sun. The garage is equally impressive, equipped with an epoxy floor coated with granite chips, built-in cabinets, and hanging racks for all your organizational needs, along with a LiftMaster belt drive, Wi-Fi garage door opener. Additional updates include Norman plantation shutters on all windows and center-open sliders, a master closet upgrade, and a Murphy bed frame with queen size mattress and cabinet for versatility. Other notable enhancements include the replacement of bathroom counters and sinks, four Pfister bathroom faucets, an upgraded HVAC with new damper units and a new inverter for the solar system, and comprehensive grout sealing throughout the house. Fresh paint adorns the front hallway, kitchen, and living room walls and ceiling, while a decorative cornice adds charm to the patio door. Beyond your doorstep, the Victory at Verrado community offers an impressive array of amenities, including a 7,000 sq. ft. fitness center, golf course, pickleball courts, four pools, bocce ball courts, arts & crafts, a media room, lending library, delightful dining options, shopping, a rejuvenating day spa, and even a vineyard! Experience a lifestyle of leisure and luxury in this remarkable home!

108 W Villa Rita Drive Phoenix, AZ 85023

$599,890
5 Beds
3.5 Baths
2,336 SqFt
Status Active
MLS # 6753499
Property Type Single Family Residence
Price Type --
Come see this FURNISHED 5 bedroom, 3.5 bath REMODELED home located in a quiet North Phoenix neighborhood . This home is nearly 2400 sq ft and features 2 Master Bedrooms both with ensuite bathrooms, perfect for a large family, multi-generational families or an Airbnb. No HOA. The home is currently a successful Airbnb with amazing reviews. Beautiful pool in the backyard features a built in table. The garage is oversized for additional storage or a home gym. Home is centrally located just min away from the 101 Freeway for an easy commute.

10633 S 44th Street Phoenix, AZ 85044

$599,800
4 Beds
2 Baths
1,849 SqFt
Status Active
MLS # 6738373
Property Type Single Family Residence
Price Type --
Welcome to your dream home in the highly desirable neighborhood of Ahwatukee. This stunning, modernized residence offers a spacious great room floor plan, perfect for both entertaining and comfortable living. With numerous recent upgrades, this home is move-in ready and boasts high-end finishes throughout. Step inside to find luxurious vinyl tile flooring that is not only stylish but also waterproof and scratch-proof, providing worry-free living for families and pet owners alike. The expanded and remodeled kitchen is a chef's delight, featuring custom white cabinetry, sparkling black quartz countertops, and top-of-the-line stainless steel appliances. Enjoy the abundance of natural light that fills the home, thanks to gorgeous Anderson High Performance windows and a sleek sliding glass

9214 W Kerry Lane Peoria, AZ 85382

$599,700
3 Beds
2.5 Baths
2,258 SqFt
Status Active
MLS # 6757552
Property Type Single Family Residence
Price Type --
Golf course gem fully renovated with nicest touch of art and harmony. 2258 square feet, 3 bed 2.5 bath gorgeous home backing to golf course with infinite beautiful views. This home has 2 car garge, room for golf cart storage, covered patio, fireplace. It's been loved from top to bottom.

20637 W Rancho Drive Buckeye, AZ 85396

$599,590
2 Beds
2 Baths
1,528 SqFt
Status Active
MLS # 6753670
Property Type Single Family Residence
Price Type --
Ready for move in by end of year!! Experience the epitome of Mountainside living with our Turnberry design. A welcoming open courtyard offers stunning views of the White Tank Mountains and year-round sunsets. Welcome to your new oasis! This 1,528 sq. ft. single-story stunner features 2 bedrooms and 2 bathrooms of pure luxury. Experience top-tier comfort with spray foam insulation, while recessed LED lighting casts a modern glow throughout. The impressive 12' sliding glass wall effortlessly merges indoor and outdoor living, and 8' doors paired with 10' ceilings create an open, airy atmosphere. Complete with a paver driveway and walkway, this home combines sleek design with sophisticated functionality. Your perfect blend of elegance and practicality awaits!

807 Co Rd 3144 -- Vernon, AZ 85940

$599,500
3 Beds
2 Baths
2,300 SqFt
Status Active
MLS # 6699527
Property Type Single Family Residence
Price Type --
This beautiful horse property offers breathtaking views and a range of amenities for horse enthusiasts. This property is less than a mile off the main hwy with paved access all the way. The property includes a well-maintained barn with two horse stalls, a tack room, storage room and an arena for training and riding. The spacious two-acre parcel is fully fenced and crossed fenced, providing a safe and secure environment for the horses and any other pets. Access to the property is through a gated entrance with a charming, treed circle driveway. The main residence is a spacious three-bedroom, two-bathroom home, featuring a wood burning stove, and a large master suite with two additional rooms off the master that can be used as a nursery, home gym, or office. The home boasts a large dining room and a back covered porch, both of which offer stunning views of the surrounding landscape. Whether you are a horse enthusiast or simply appreciate the beauty of nature, this property is sure to impress. Schedule your showing today.

40721 W Georgia Avenue Tonopah, AZ 85354

$599,500
4 Beds
3 Baths
2,192 SqFt
Status Active
MLS # 6754914
Property Type Single Family Residence
Price Type --
This beautiful custom home is almost ready for a family to live in this peaceful area north of I-10. It features an RV garage, modern style double front door, matching modern garage doors, 10' ceilings, open floor plan, neutral warm colors, tile flooring and carpet in all the right places, with 6'' base boards. Kitchen will feature wood expresso color cabinets, granite or quartz counter tops, oven range, hood, plus wall oven and microwave, ss appliances and refrigerator. Split floor plan has 3 bedrooms with custom shelving and 1 of the bedrooms has a large walking closet, 1 bathroom has a large garden tub/shower with double sinks. Master bedroom has large walk-in closet, custom tile shower, and double sinks. Energy efficient home with dual pane windows, 2x6 framing, spray foam insulated ceilings and exterior walls, along with batted insulated walls. RV garage and garage are fully spray foam insulated, along with 220 amp in RV garage for a mini split ac system, lift master garage door openers, 220 amp in the 2 car garage for a future electric car charging plug. A 2000 septic tank to accommodate a future guest house. 3 share wells altogether. Must see!

8855 W Northview Avenue Glendale, AZ 85305

$599,500
5 Beds
3 Baths
2,545 SqFt
Status Active
MLS # 6779939
Property Type Single Family Residence
Price Type --
This beautifully maintained home in the desirable Rovey Farm Estates is a true gem! With 5 spacious bedrooms, including a convenient downstairs bedroom, it offers plenty of room for the whole family. Featuring large Kitchen with granite countertops, a center island, and stainless steel appliances — perfect for the home chef! Open-concept living with a cozy family room, ideal for entertaining. Fresh interior paint and tile flooring throughout the entire first floor for a clean low-maintenance look. Expansive master suite with a private walk-out balcony, offering serene views of the greenbelt behind the home. Spacious, well-sized bedrooms ensuring comfort and privacy. Sparkling private pool, paved backyard, and plenty of space for lounging and dining, making it a perfect outdoor retreat! Minutes from Westgate District, where you can shop, dine and entertain!

15551 N 179th Drive Surprise, AZ 85388

$599,500
5 Beds
3 Baths
3,300 SqFt
Status Active
MLS # 6784550
Property Type Single Family Residence
Price Type --
Welcome to your new spacious 3,300 sq. ft. Surprise Farms gem! This fantastic five-bedroom, three-bathroom home features a sparkling pool and three-car garage! The main floor showcases stylish vinyl plank flooring, while the kitchen shines with stainless steel appliances and brand-new granite countertops, ideal for hosting gatherings and/or family meals. With a light, bright and flexible layout this home is designed to adapt effortlessly to your lifestyle. The expansive primary suite offers a luxurious en suite, creating the ultimate relaxing retreat. Step outside to your private backyard oasis with a covered patio, lush grass lawn, and an inviting pool—perfect for warm days and serene evenings. Nestled on a large corner lot with no neighbor to the south, this home truly has it all! Great location close to community parks and fields with EZ access to the Loop 303!

1110 E Phoenix Street Payson, AZ 85541

$599,500
4 Beds
3 Baths
2,044 SqFt
Status Active
MLS # 6711716
Property Type Single Family Residence
Price Type --
Beautiful one of a kind custom built 4 bedroom home in the highly desirable Rim View Heights Estates. Perfect for full time living or for a family getaway - there is plenty of room for everyone! It has a Great Room concept with vaulted ceilings, there is a family room as well as a formal living room. One bathroom has a walk in tub with jacuzzi jets. The home boasts 2 en-suite bedrooms with bathrooms. There is a large deck and patio to sit and enjoy the cool mountain evenings. Tall pine trees on the lot and wonderful views. Come see the brand new flooring throughout the entire house! The roof is only 5 years old. This is a lot of house for the money!

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