Back to Glossary
Affordability Analysis
Updated
January 19, 2023
A preemptive analysis to determine whether the borrower is able to afford purchasing a home. This analysis usually considers: income, liabilities, available funds, credit score, interest rate, type of home loan, likely taxes, home insurance cost, and potential closing costs. Understanding the various cost factors that are involved in a mortgage can help provide you with reassurance to the affordability of your future home.
Related Topics
Payment and Debt Ratios
Home Value: Appraised, Estimated, Actual
How Much of a Mortgage Payment Goes to Principal
What Do Underwriters Do?
What Does Loan Underwriting Mean
Loan To Value and Down Payments
What is Underwriting in Real Estate?
Homeowner's Guide: DIY Home Improvement