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

There 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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Sort by: Select Price, Low to High Price, High to Low Newer Listings First Older Listings First Open House Date

16182 W Casa Bonita Court Surprise, AZ 85374

$589,900

3 Beds

2.5 Baths

2,529 SqFt

Status Active

MLS # 6768602

Property Type Single Family Residence

Price Type --

Welcome Home! This Cordova Model Features New Roof 2024, HVAC Replaced in 2021, Exterior Painted 2021, 3 Bedrooms, 2.5 Baths, Electric Stove/Oven, Newer Microwave, Black Slate Whirlpool Refrigerator, RO, Inside Laundry with Cabinets, 3 Car Garage with Sink, Recirculating Hot Water, Lots of Storage, Exit to Rear Yard, on Large cul-de-sac, Extended Front Courtyard, Extended Rear Patio Partially Fence,

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1382 W Chillingham Road San Tan Valley, AZ 85143

$589,900

4 Beds

3.5 Baths

2,679 SqFt

Status Active

MLS # 6775708

Property Type Single Family Residence

Price Type --

Welcome to this stunning beauty in the gated neighborhood of Magnolia Circle. This incredible home features four bedrooms, three and half bathrooms and multiple living areas for a large family! The breathtaking kitchen features a large open concept for a chef and entertainer's dream. Step to the backyard and discover a newly constructed play pool! This home truly has it all at a price that will not last.

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6383 Old Forest Trail Show Low, AZ 85901

$589,900

3 Beds

3 Baths

2,852 SqFt

Status Active

MLS # 6779519

Property Type Single Family Residence

Price Type --

THIS HOME IS LISTED UNDER RECENT APPRAISED VALUE! Main home is 2084 sq Ft and features a separate casita above garage that is 768 sq ft. This charming site-built home sits on 1.01 acres with two driveways. Home, as well as the casita have been recently painted inside and out, new flooring installed throughout the home and has an animal pen with closed shed and metal cover. Main home is 2 bed, 2 bath and a den/potential bedroom, full utility room, large 768 sq ft 3 car garage with storage room, vaulted ceilings, covered patio front and back. Main bedroom has its own balcony with screened door. Guest casita has a separate entrance through garage, full bathroom, wood burning stove, and is large enough for a bedroom section as well as a sitting area, and provides its own hot water heater.

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2300 E Campbell Avenue Unit 314 Phoenix, AZ 85016

$589,900

3 Beds

2.5 Baths

1,345 SqFt

Status Active

MLS # 6764225

Property Type Apartment

Price Type --

Luxurious living awaits in this Exclusive Biltmore condo with sweeping pool deck views.An expansive open floor plan boasts engineered wood in living areas and tile in bedrooms, blending elegance and practicality. Modern comforts include a Jack and Jill bathroom, a glass shower with seating, Nest thermostat, and electric roller shades. Culinary excellence meets design with Bosch appliances and a KitchenAid fridge. Savor sunset views from the patio, or unwind in serene, concrete-walled rooms. With 5 owned parking spaces (perfect for a truck parking or rental income), an electric charging station, and the largest private storage unit fully enclosed, this residence delivers unmatched convenience. Concierge service and upscale amenities complete this refined lifestyle at Biltmore Contour Condo

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2059 W Desert Hollow Drive Phoenix, AZ 85085

New

$589,900

3 Beds

2.5 Baths

1,940 SqFt

Status Active

MLS # 6787793

Property Type Single Family Residence

Price Type --

Original owner is ready for new owner of this beautiful home built by Ashton Woods in the heart of Union Park at Norterra. This gorgeous and spacious home is an open floor plan with 3 bedrooms, 2.5 bathrooms, and 2 car attached garage. The main level is perfect for lounging or entertaining company. The kitchen has plenty of storage space with 42 inch upper cabinets, an island with seating area, and walk in pantry. Modern granite counters and stainless steel appliances (including gas range) compliment the cabinet colors (white and blue). The dining area is near the sliding glass door to outdoor yard. Owner customized the yard with pavers, low maintenance desert plants, and a beautiful water feature. A main floor powder room is a convenience for guests and has beautiful mosaic tile. . . floors, as do the upstairs bathrooms. A beautiful metal and wood stair rail leads the way to the upstairs 3 bedrooms. Owner suite is very spacious and has an ensuite with dual sinks, tub, and walk in shower. Owner closet (with attached safe) has access to the laundry room (front load washer and dryer included). Two other bedrooms and bathroom are split from owner suite.

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6501 W Molly Lane Phoenix, AZ 85083

$589,900

3 Beds

2 Baths

2,078 SqFt

Status Active Under Contract

MLS # 6771053

Property Type Single Family Residence

Price Type --

This rare, one-story gem sits on a corner lot & backs directly to a serene mountain preserve, providing both views/sunsets & total PRIVACY! Step inside to find a bright, open-concept great room. Newly updated kitchen showcases modern stainless steel appliances, gas cooktop, charming farmhouse sink, upgraded faucet, pendant lighting & more! Primary BR is spacious with fully remodeled bathroom and stand alone soaking tub, quartz double vanity. Other features inc: Water Softener, R/O, Garage Floor Epoxy, professional paint throughout, replaced outlets, door hardware, ceiling fans, Ring security, yearly A/C tune ups, replaced Garage Rollers, New Thermostat, surround sound, etc. Don't miss this opportunity to own a truly unique property w/peaceful setting, modern conveniences at a great value

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3915 E Kimberly Way Phoenix, AZ 85050

New

$589,900

3 Beds

2.5 Baths

1,924 SqFt

Status Active

MLS # 6787117

Property Type Single Family Residence

Price Type --

Welcome to your new home! Perfectly situated near Highway 51 and Union Hills Road for easy commuting, this beautifully updated property is located in the coveted Paradise Valley School District. Step inside and be captivated by the space and the modern upgrades throughout. With soaring ceilings and an open layout, this home is has a place for everyone! The large master suite is a true retreat, offering abundant natural light, a vaulted ceiling, and a stunning, spa-like bathroom (updated in 2023), that features double sinks and lighted mirrors. The spacious walk-in closet is another fantastic feature!! Don't miss the spacious kitchen, with plentiful storage and granite counters. The dining/living room on the main floor, and the loft upstairs are both perfect spaces for flexible needs, such as a home office, crafting, or play area. This home has been meticulously maintained with major updates including a roof restack (2021), furnace and A/C (2023), fresh exterior paint (2021), and new hot water tank (2021). Additional upgrades include a remodeled main bath (2024), new carpet (2020), and a Level 2 EV charger in the garageideal for the environmentally conscious. Some windows have also been replaced. The garage is equipped with built-in storage cabinets, and, for the workout enthusiast, multiple mirrors, creating the perfect setting for a home gym. Enjoy Arizona living at its best in your private backyard oasis complete with a sparkling pool, updated pool equipment (2023), and a covered patio perfect for outdoor gatherings. Take the opportunity to own this move-in-ready home that combines convenience, style, and thoughtful updates.

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39724 N Rolling Green Way Anthem, AZ 85086

$589,900

4 Beds

2.5 Baths

2,815 SqFt

Status Active

MLS # 6744991

Property Type Single Family Residence

Price Type --

Stunning 4-bedroom, 2.5-bath home is located in the highly sought-after Anthem Parkside community! Boasting a detached 240 sq. ft. casita with a private entrance - perfect for guests, a home office, or a gym. Inside, you'll find stylish tile flooring with plush carpeting in all the right places. The large primary bedroom features an ensuite bathroom with double sinks and ample closet space. A versatile loft area offers additional living space or a playroom. The 2-car garage provides plenty of storage, and the home is part of a vibrant community with top-notch amenities including parks, pools, and trails. Located in the heart of Anthem, this home offers both comfort and convenience.

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4602 E Monte Way Phoenix, AZ 85044

$589,900

3 Beds

2 Baths

1,735 SqFt

Status Active

MLS # 6682751

Property Type Townhouse

Price Type --

Price Reduction!!! Excellent Golf Course Lot has the views but far enough away to be private & very few if any golf balls*Corner lot*Mountain Views*Home is a block away from South Mtn Park*Private In Ground Heated Spa*Multiple Patio Areas*Wood Shutters*Tile Floors Through-out*Vaulted Ceilings*Newer Heat Pump*Split Bdrm Plan*3rd Bdrm Can be Den or Bdrm*Nicely landscaped*Community pools & spas*

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4941 Saddle Blanket Circle Happy Jack, AZ 86024

$589,900

3 Beds

2 Baths

1,531 SqFt

Status Active

MLS # 6682510

Property Type Single Family Residence

Price Type --

Are you ready to escape the heat and bring your horses with? This is the home for you. Almost an acre and a half with great corrals, tack shed ,horse wash area, and so much more. This beautiful log sided cabin/home is decorated for the horse lover and comes completely furnished. It has been taken care of and is filled with love , perfect for a permanent home or weekend or summer home. Get your horses out of the heat, take them for some amazing forest rides with our great riding group up here. This is a must see ''mini ranch''. 3 bedroom/2bath cozy but with enough room for your guests. Come see it now. Sit in your front yard and watch the elk graze on the beautiful grass or sit in the back barbuque area and watch as your horses play.in the 60 x 120' ft corrals. Must see in person.

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20038 N 21st Street Phoenix, AZ 85024

$589,900

4 Beds

2 Baths

1,784 SqFt

Status Active

MLS # 6687430

Property Type Single Family Residence

Price Type --

Come see this beautiful 4 bedroom, single level home with a pool in a quiet hidden alcove neighborhood in north Phoenix. This home features: plank tile flooring, quartz countertops in the kitchen, a 3 car garage, NO HOA, full length rear covered patio, pebble tec swimming pool, ceiling fans throughout, newer windows, updated fixtures throughout, dual sinks in both bathrooms, a nice open & flowing floor plan, vaulted ceilings, & brand new hot water tank (2024). This neighborhood is extremely quiet, with gorgeous mountain views, easy access to the 101, & has a lot of great restaurants and shopping close by (Costco is up the street, multiple public parks, Desert Ridge shopping & restaurants). Also close by is the Arrowhead Mall area, Westgate shopping & Arizona Cardinals stadium. NO HOA!!

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12826 N 29th Street Phoenix, AZ 85032

$589,900

3 Beds

2 Baths

1,545 SqFt

Status Active

MLS # 6715302

Property Type Single Family Residence

Price Type --

Welcome to a meticulously renovated sprawling ranch home where no detail has been overlooked. This home has undergone a comprehensive transformation! Upon entry, you're greeted by new waterproof flooring that extends throughout. Natural light floods the interior through newly installed energy efficient dual pane windows. New custom windows & coverings combined style w/ functionality. The fully remodeled kitchen, featuring new custom Thomasville shaker cabinets, Quartz countertops & designer backsplash. Equipped w/ top-of-the-line LG appliances including a fridge, stove, dishwasher, & in-drawer microwave. The primary bath has been completely reimagined to offer a luxurious retreat, while an additional bath off the hallway is also fully renovated. Private pool just in time for summer!

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