If you are not planning to pay cash for your purchase we highly recommend getting pre-approved by a lender prior to even starting your home search. This way we can determine exactly what your price range and loan type will be up front.

Why Get Pre-Approved?

  1. You will know in advance what your payments will be on offers you choose to make.
  2. You won’t waste time considering homes you cannot afford.
  3. A seller may choose to make concessions if they know that your financing is secured.
  4. You can select the best loan package without being under pressure.

Pre-Approval V. Prequalification

How Much Home Can you Afford?

Most lenders require that your monthly payment range between 25-28% of your gross monthly income. Your mortgage payment to the lender includes the following items:

  • The principal on the loan (P)
  • The interest on the loan (I)
  • Property taxes (T),
  • The homeowner’s insurance (I).
Your total monthly PITI and all debts (from installments to revolving charge accounts) should range between 33-38% of your gross monthly income. These key factors determine your ability to secure a home loan: Credit Report, Assets, Income, and Property Value.

The Ten Commandments When Applying for a Real Estate Loan:

  1. Thou shalt not change jobs, become self-employed or quit your job.
  2. Thou shalt not buy a car, truck or van (or you may be living in it)!
  3. Thou shalt not use charge cards excessively or let your accounts fall behind.
  4. Thou shalt not spend money you have set aside for closing.
  5. Thou shalt not omit debts or liabilities from your loan application.
  6. Thou shalt not buy furniture.
  7. Thou shalt not originate any inquiries into your credit.
  8. Thou shalt not make large deposits without first checking with your loan officer.
  9. Thou shalt not change bank accounts.
  10. Thou shalt not co-sign a loan for anyone.

Our preferred lenders can assist you with any of your financing questions. Please call us to request our lender list.