Now that tax season is behind us, you have something lenders really care about: verified income.

If you have been thinking about buying, this is a good time to run some quick numbers and see roughly what you might qualify for. You do not need to talk to anyone yet. You just need your tax return and a calculator.

Lenders use something called Debt-to-Income ratio, or DTI, to figure out how much mortgage you can handle. It is pretty simple. Take all of your monthly debt payments, add in your estimated housing payment, and divide by your gross monthly income.

Different loan types allow different DTI limits:

  • Conventional: 45–50% typical maximum DTI
  • FHA: 43–57% typical maximum DTI
  • VA: 41%+ (flexible)
  • Jumbo: 38–43% typical maximum DTI

Here is a quick example.

Say your gross monthly income is $8,000. Using a 45% DTI limit, that means your total monthly debt (including your future mortgage payment) should stay under $3,600.

If you already have $500 a month going toward a car loan or student loans, that leaves about $3,100 for your housing payment. That covers principal, interest, taxes, and insurance.

At today's rates, that roughly translates to a purchase price somewhere in the $450,000 to $500,000 range depending on your down payment, credit score, and the specific property taxes and insurance.

This is not exact. A lender will verify everything and give you real numbers. But it gives you a starting point so you are not guessing.

If you want to run your numbers with someone, I am happy to connect you with a lender I trust. No pressure, just information.