Mortgage Broker Company - How Much Can You Afford For A Mortgage?

When you want to figure out what you can afford. The first step is to figure out what your monthly income. Lenders only calculate the income that is documented with paperwork.

Generally if you are a salaried employee go ahead and grab your paycheck. If you get paid every two weeks multiply your check by 26 and divide by 12.

If you earn bonuses, commissions or work overtime it will not be as easy to calculate. Get out your W2 forms for the last two years, add them together and then divide them by 24. That will be your monthly income.

If you are self-employed or receive 1099 income, you will need to go back two years with IRS documentation. Look at the schedule C of your tax returns for the last two years and check your profit and divide by 24.

Of course there are always exceptions, teachers, corporations, etc.

Sharon