Now that you know what you're looking for, the next step is figuring out what you can afford. A review of your income, savings, monthly expenses, and debt will be necessary. Early on in the process, you'll want to get pre-qualified for a mortgage loan, which helps determine how much you can afford. It enables you to move swiftly when you find the right home, especially when there are other interested buyers. It also indicates to the seller that you are serious and can afford to buy the property.
A pre-approval is a simple calculation done by a mortgage lender that tells you the amount you'll be able to finance through a loan and what your monthly payment will be. When you find a home to buy, a pre-approval also reassures the seller that you have the financial means to purchase his or her home.
Know what you can afford is the first rule of home buying, and that depends on how much income and how much debt you have. It pays to check with several lenders before you start searching for a home. The price you can afford to pay for a home will depend on several factors, such as: gross income the funds you have available for the down payment, closing costs and cash reserves required by the lender your debt your credit history the type of mortgage you select current interest rates that are available.
Every Loan is different, with so many changes happening out there in the lending market you really need to speak to someone who is well versed in that field. Please call me so that I can help you and put you in contact with mortgage professionals. www.RicardotheRealtor.com
I have worked with and highly recommend:
Marisol Navar
Mortgage Loan Officer-Habla Espanol
American Capital Investment Group
562-688-2856
mnavar@aciginc.com
Steve Hageman
Mortgage Loan Officer
Bank of America
562-626-8718
steve.hageman@bankofamerica.com
Keller Williams Bellevue - Sammamish, WA
Ricardo, This is excellent advice. Knowing your price range can affect where you want to look for homes as some neighborhoods are more or less expensive than others.
Feb 28, 2010 03:09 PM
Keller Williams Realty - Long Beach, CA
For all of your Real Estate needs & more... Call R
Dan, You are absolutely right... especially in the areas that by simply crossing a street can raise or lower home prices. We have a lot of pockets that you really have to stay on top of to make sure you give the proper advice. Thank you for your comment and I wish you much success!
Mar 02, 2010 09:44 AM
Rainer
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Ricardo "The Realtor" Perdomo
For all of your Real Estate needs & more... Call R
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