Get a rough estimate of how much you could borrow based on standard lender criteria. No credit check — purely educational.
Lenders look at how much of your monthly income already goes to debt. Below 36% is ideal.
Estimated range across different lender types based on your profile.
When you apply for a mortgage, auto loan, or personal loan, lenders evaluate several key factors to determine whether to approve your application and at what interest rate. Understanding these criteria before you apply helps you know where you stand — and what to improve if you don't yet qualify for the best terms.
Your debt-to-income ratio is your total monthly debt payments divided by your gross monthly income. Most mortgage lenders want a back-end DTI (including the new loan payment) below 43%. For conventional mortgages, under 36% is preferred. Auto lenders are typically more flexible, accepting DTIs up to 50%. The lower your DTI, the stronger your application.
Conventional mortgages typically require a minimum 620 credit score, but the best rates go to borrowers with 740+. FHA loans allow scores as low as 580 with 3.5% down. Auto loans are available across a wide score range, but expect significantly higher interest rates below 650. Personal loans from banks usually require 660+, while online lenders may approve lower scores at premium rates.
Lenders want to see consistent, verifiable income. For employees, this typically means 2 years of W-2 history with the same employer or in the same field. Self-employed borrowers usually need 2 years of tax returns showing stable or growing income. Lenders use your gross income (before taxes) to calculate DTI, but they verify it carefully — income that can't be documented typically can't be counted.
Down payment size also matters significantly for mortgages — putting 20% down eliminates private mortgage insurance (PMI), which can add $100-300/month to your payment. A larger down payment also reduces the loan amount and demonstrates financial stability to lenders.