Getting approved for a mortgage shouldn’t be a worry: It’s all in the preparation BEFORE you make application: There are 3 key points you need to pay attention to: Credit, Income, and Assets Watch my videos on credit, get your scores up and keep your monthly debt payments low. The higher your score, the lower mortgage cost will be, the more house you can afford. ! A simple $500.00 a month car loan can reduce your mortgage buying power as much as $117,000.00! So, buy the new car AFTER you buy your house If you’re a W2 worker we use 45% of your GROSS monthly income to cover your monthly debts and housing expenses, which include real estate taxes, HOA dues, Homeowners Insurance, and the monthly loan payment. If your self-employed, we use 12 to 24-month income average of your NET adjusted gross income. Assets can come from investments, savings and checking accounts a family gift, or even government aid but not borrowed money. Currently, total costs to buy a $300,000.00 home in Palm Beach county Florida is about $20,000.00 with your good credit, prepaid expenses and escrows.