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Affordability

What Can You Actually Afford?

A mortgage calculator, debt-to-income and pre-approval guidance, and personalized closing cost estimates — built for Chicago buyers and sellers.

Estimate your monthly payment.

Adjust the inputs to see how price, down payment, rate, and term change what you'll owe each month — including taxes, insurance, and HOA.

Estimated payment · excludes mortgage insurance
Breakdown ↓
Home Price $500,000
Down Payment 20% · $100,000
Loan Term
Interest Rate
Property Tax / yr
Insurance / yr
HOA / month

Estimated Monthly Payment
$3,244/mo

Illustrative fixed-rate estimate. Includes the taxes, insurance and HOA you enter. Excludes mortgage insurance, closing costs, maintenance and changes in expenses. This is not a loan offer.

Principal & Interest $2,594
Property Tax $500
Insurance $150
Loan Amount $400,000
Total Interest $533,804
Pre-Approval, Explained

The four things every Chicago buyer should understand before they tour a single property.

01

Pre-qualification vs. pre-approval

A pre-qualification is a conversation — a lender eyeballs what you tell them and offers a ballpark loan amount. Nothing is verified.

A pre-approval letter describes what a lender may be willing to lend based on its review. Ask what has been verified and which conditions remain. Final approval still depends on underwriting and the property.

02

What lenders look for

Lenders consider these factors together. Ask how your income, debts, credit and reserves affect the programs available to you.

Debt-to-income ratio (DTI) Credit score & history Reserves & liquid assets Two-year employment history
03

Documents to have ready

Gather these before your first call with a lender, then ask which additional documents your application needs.

W-2s (past two years) Federal tax returns Bank statements (60 days) Government-issued photo ID Recent pay stubs Investment & retirement statements
04

Why pre-approval wins in Chicago

Chicago's strongest listings generate multiple offers — and when they do, sellers choose the cleanest one, not simply the highest.

A written pre-approval helps a seller assess your financing readiness. Ask your lender to explain the remaining conditions before you make an offer.

The ratio that shapes how much a lender will approve.

Debt-to-income (DTI) compares your monthly debt payments to your gross monthly income. Lenders use it to judge how large a housing payment you can carry.

Front-end ratio

Housing costs only — principal, interest, property tax, insurance, and any HOA dues — divided by gross monthly income.

Back-end ratio

Housing costs plus every other monthly debt payment: car loans, student loans, and minimum credit card payments.

A worked example

Gross monthly income
$12,000
Housing payment
$3,000
Other monthly debts
$900
Front-end ratio
25%
Back-end ratio
32.5%

A common guideline is a front-end ratio near 28% and a back-end ratio near 36%. Many lenders approve higher ratios for borrowers with strong credit or reserves, and every loan program sets its own limits — confirm yours with a lender.

For Buyers

Get a Personalized Buyer Closing Cost Estimate.

Closing costs vary by municipality, title company, and loan type. Send me your details — I'll run a custom estimate and email it back within 24 hours.

Sent directly to matt@theneistatgroup.com.

Request Received

Thanks — I'll review your details and email a personalized estimate within 24 hours.

For Sellers

Get a Personalized Seller Net Proceeds Estimate.

Every sale is different — transfer taxes, title fees, and prorations all shift by location. Send me your details and I'll run the numbers for you.

Sent directly to matt@theneistatgroup.com.

Request Received

Thanks — I'll review your details and email a personalized estimate within 24 hours.

Frequently Asked

The questions buyers actually ask.

The amount depends on your loan program and eligibility. Ask lenders to compare your down-payment options alongside the interest rate, mortgage insurance, closing costs, and cash left in reserve.
Credit requirements depend on the loan program and lender. Your income, debts, assets, and the property also matter. Ask a lender to review your full application and explain which options you qualify for.
Timing varies by lender and the documents required. Start by asking for a document checklist and an expected review timeline. A pre-approval is conditional, not a guaranteed loan offer.
For an initial look at open houses, no. But once we're scheduling private showings — especially in the $1M+ range — listing agents expect to see a letter before they open the door. I'd rather you have it than not.
Closing costs depend on the loan, property, municipality and contract. Compare the lender’s Loan Estimate with the title company’s estimate, including fees, prepaid costs and prorations. Request a personalized estimate above to discuss your property.
In Chicago, the city’s $3.75 per $500 transfer-tax component is generally the buyer’s responsibility; the additional $1.50 per $500 CTA component is generally the seller’s. Exemptions can apply. Other fees and tax prorations depend on the transaction and contract. Confirm the allocation with your attorney and title company.
Advisory

Talk through your numbers.

A calculator gives you a range. A conversation turns it into a plan — what to offer, what to keep in reserve, and what to ask your lender.