Start with durable cash flow
List stable take-home income, required debt payments, childcare, insurance, taxes not withheld, and essential spending. Lender ratios and household comfort are different tests. A loan may fit a guideline while leaving too little operating margin.
Keep irregular income and bonuses in a separate scenario until their continuity is supported.
- Stable income
- Required monthly debts
- Essential household costs
- Emergency and repair reserves
Stress the ownership costs
Model property tax, insurance, association charges, utilities, repairs, and a rate reset if the loan can adjust. Use a range rather than one optimistic number.
Prequalification language varies and is not a commitment to lend. Do not schedule irreversible spending from this worksheet alone.
Increase the modeled payment and ownership costs by a realistic stress amount and confirm the household still retains its chosen reserve.