Get Pre-Approved for an Amarillo, TX Home Loan

There are great benefits to getting pre-approved for an Amarillo, TX home loan, which is different than getting pre-qualified for a home loan. There are many potential home buyers who are really sure how the whole home buying process goes and what steps should be taken. It can make things stressful for the homebuyer if they start out wrong; therefore, I have some tips and advice on what the necessary steps are for getting pre-approved for an Amarillo, TX home loan. You can also use these steps for other areas of the country.

Pre-approval – There are several steps that are required for acquiring an Amarillo, TX home loan. The first step is to get pre-approved, not just pre-qualified for a home loan. Getting pre-qualified can be a waste of time in some cases because it does not guarantee your home loan. Getting pre-approved can be a lengthy process and you will need the following information:

* Last two years tax returns

* One full month of paystubs

* Two months of statements from checking, savings, stocks, IRA’s, 401K’s or anything else that would apply as income

* Decent to good credit

Down payment – There are many types of home loan programs within your reach. You can choose from FHA loans, Conventional loans, USDA loans, and VA loans. Once you are pre-approved for a home loan your lender will calculate taxes, insurance, actual house payment, closing costs and more.

After the lender has pre-approved you for the loan, you will know a price range in which you can shop. This step will give you an array of homes in Amarillo, TX that you can afford. Then, when you have chosen your dream home, you can put in an offer. Your lender will send a letter of pre-approval to the seller so they will know you have your financial backing already.

Budgeting – The most important step to buying a home is not underestimating all that goes into a house payment. You will also have other obligations like annual taxes and insurance, home maintenance and more. Choose a price range that you can still set aside money each month for emergency repairs and general upkeep of the home. Usually every few years you will need to replace something like the ac unit, water heater, roof, pipes, etc.

And always keep in mind that you will have utilities, probably a car payment, entertainment needs and more. You will have to ask yourself how much you will need to live on each month. Will it get you by? Or, will it be more than enough?

These home loan tips are brought to you by: Tom Kile – your real estate resource for Amarillo, TX and surrounding communities.

Originally posted at: http://allamarillohomes.info/get-pre-approved-for-an-amarillo-tx-home-loan/