1. How can I find out how much I can qualify for when looking to buy a house?
Your loan officer will evaluate your income, your current debts and estimated down payment. Based on this information, they can usually determine the maximum mortgage amount for which you could qualify within minutes. You may also access our payment calculator to make your own preliminary evaluation, of your ability to make monthly payments, based on various loan amounts. This process is frequently referred to as a “pre-qualification analysis.” In some cases, your loan officer may give you advice on ways in which you can improve your overall financial stability to better qualify to purchase a home. You may also choose to have your loan officer perform a pre-approval, which will require a more detailed analysis. (see below)
2. What is a pre-approval?
When you talk with your loan officer for a pre-approval, he/she will evaluate your income, your current debts, estimated down-payment and your credit report. Using this information, they will be able to perform a more in depth analysis of your financial picture and issue a pre-approval letter. The pre-approval letter is not a guarantee of loan approval, but rather an approval based on conditions that will need to be met once a formal loan application is performed. Many Realtors now require a prospective home buyer to be “pre-approved” before they will submit a contract on a home. Check with your Realtor for details or ask your loan officer.
3. How can I accumulate money for a down payment?
For many potential homebuyers, the money necessary for a down payment is often the biggest deterrent to home ownership. Here are several ways you can acquire enough money for a down payment.
4. What can I do to maximize my buying power?
There are several factors that your loan officer and the underwriter will consider when qualifying you for a loan. The most significant factors are your income, debts and your down payment. In order to maximize the amount of money you can borrow, you need to consider the following things:
5. Are there financial actions I should avoid taking while undergoing the loan approval process?