Find a Loan that Fits Your Needs
Before you begin shopping for your next home, it helps to figure out your budget. That way there are no surprises later and you can fully enjoy your new home rather than stressing over its monthly payments. To determine your purchasing power, consider the following: monthly income, monthly debts, down payment amount, loan closing costs and your credit history.
Pre-Qualification
Once you feel your budget is in order, you may then may want to consider visiting with a licensed Mortgage Professional to get pre-qualified for a particular home loan. Your pre-qualification for a particular home loan amount helps your Realtor focus your search so that you will be looking just at homes within your price range. Pre-qualification begins by speaking with your lender and providing such information as your income and current debts. You will not have to provide any supporting documentation until you start the home loan process. The lender simply uses this information to determine how much you can afford to borrow.
Pre-Approval
A certificate of Pre-Approval is the best way of demonstrating your ability to purchase a home. Pre-approval offers are also given stronger consideration than pre-qualification letters alone. You'll provide your lender with documentation such as W-2 Forms, paycheck stubs and savings/checking account statements. Your lender will also run a credit report to establish credit worthiness. It's a little more work up front, but really pays off by minimising any last-minute problems that may impact the loan closing. And as previously noted, sellers and Realtors take home purchase offers presented with a certificate of pre-approval more seriously.
If you are currently working with a Licensed Mortgage Professional, congratulations! You are ahead of the game. However, if you need assistance in this area you may complete the form below and I can have a qualified mortgage specialist help us determine a price range that works with your budget.
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