Create a payment analysis. Show what the buyer can expect to pay monthly by showing various scenarios with different down payments. Below is a sample.

.
10% Down
30-yr fixed
10% Down
1-yr ARM
20% Down
30-yr fixed
20% Down
1-yr ARM
Purchase Price
$100,000
$100,000
$100,000
$100,000
Down payment
$10,000
$10,000
$20,000
$20,000
Loan Amount
$90,000
$90,000
$80,000
$80,000
Mthly Payment
$660.39
$539.60
$587.01
$479.64

Using a sample rate of 8% for a 30-yr fixed and 6% for an ARM

You can run various scenarios by using the NJ HomeGuide.com Qualifying Calculator. You will need to know the following:

Gross monthly income
Monthly debt payments (car, loans, etc.)
Monthly taxes, property insurance, Private Mortgage Insurance (PMI) and Association Fees
Interest rate - Use a 30-yr fixed rate and a 1-yr adjustable rate
Length of mortgage (Years) - Use 30 years
Down payment ($) - Use 10% and 20%

Financial Options


Your information packet should also include current rate information from at least 3 different lenders. Be sure to include interest rates for a 30 yr. fixed rate mortgages, as well as, one-year adjustable mortgages.

It's not necessary to include a mortgage application in the information packet, but you should have it handy to show prospective buyers.

If the buyer has not been "pre-approved," have them fill out the 5-minute Instant Mortgage Answer.

Qualifying Formula:
Housing Expense - Up to 28% of Gross Income. Housing expense includes principal, interest, taxes and insurance.
Total Debt Ratio - Up to 36% of Gross Income.