I've been looking at mortgage calculators online lately since I plan on at least beginning to look into house shopping within the next 6-12 months (permitting I have enough saved by that time).
Basically all of the ones I've come across ask to use my gross annual (or monthly) income when determining how much I would be able to afford. Obviously I'm new to the entire homebuying process in general, but I don't quite understand the logic.
Is it mainly a factor for how much I'll be able to borrow? For my own personal reference, it seems like it would make much more sense to use what I'm actually pulling in to determine what I can afford.
Are these calculators accurately giving me affordable mortgages? I just have my doubts given that I might be making low 4k per month gross, yet could only be bringing in upper-ish 2k net so ti me, it makes more sense to determine these things myself based on net. Or am I just completely off base and over my head here? (I have definitely come to accept the face I am totally incorrect here)
I am in the US. I'm not exactly asking why a bank would look at X or Y, but rather if it's beneficial/necessary to consider my own gross income (as online calculators do) despite the fact that net income seems much more straightforward or if doing so would put me in some sort of situation where I am misrepresenting some piece of information that I would otherwise be utilizing correctly through gross.