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QUESTION: How do I decide whether to buy or rent?
August 11, 2018
QUESTION: Will a reverse mortgage require me to give up my home?
September 22, 2018

QUESTION: How can we determine how much we can afford to pay for a home?

Couple Reading Brochure in New Home

Answer:

The following pre-qualification steps can help you before you start looking for a new home:

  • DETERMINE HOW MUCH HOME YOU CAN AFFORD
    Pre-qualification helps you find the right home, at the right price and in the right neighborhood.
  • SHOW WHAT YOUR DOWN PAYMENT WILL BE
    You’ll know approximately how much money you’ll need for down payment and closing costs.
  • KNOW WHAT YOUR MONTHLY PAYMENT WILL BE
    You’ll have a general idea of what your monthly principal, interest, taxes and insurance payment will be. With the wide variety of loan programs available, it’s important to know which types you qualify for and which program will best suit your needs.

Pre-qualification helps set expectations of how much money you will be able to borrow as well as down payment and monthly payment. Keep in mind that a pre- qualification is only an estimation. When you are pre-qualified you will receive a Pre-Qualification Certificate to give to your real estate agent. With your cetificate in hand, you are now ready to begin the search for your new home.

For a FREE Consultation to answer any further questions you may have and to discuss a solution to your unique situation, CLICK HERE to schedule a call with one of our lending experts.