Affordability analysis

What is Affordability analysis?

A detailed analysis of one's ability to afford the purchase of a home. An affordability analysis takes into consideration your income, liabilities, and available funds, along with the type of mortgage, the area of the home, and the closing costs that one might expect to pay. Such a calculation is often included in the Form 1008, which is known as the Uniform Underwriting and Transmittal Form and also contains a particular borrower's income and expense ratios.