So, you've decided to buy a house. Congratulations on taking this huge step into homeownership. While it is a thrilling idea, it can also be a tedious task. There are so many steps involved. The first step should always be starting the loan process by getting a loan pre approval.
Why is the loan pre approval so important? It tells you how much of a loan you are able to obtain based on your credit history. This should be seen as the maximum amount you can spend and not what you should spend. Your monthly mortgage payment should be something you are comfortable paying not something you have to struggle to pay. Knowing your limits and your budget will allow you to get a price range to begin your home search.
After getting your pre approval, your job is not over. You must remember that the approval was given based on your current credit history and current loan balances. If you buy a vehicle or miss a few loan payments, your pre approval amount can decrease or you can lose your pre approval. It is important to keep your finances in order while going through the home buying process.
If you will be using your VA benefits, you will need to get your VA certificate of eligibility. Using a VA loan will allow you to have fewer closing costs. Therefore, you will not have as much out of pocket expenses at closing. There is a cost added into your loan for this service. If you are using your benefits for the first time, the funding fee is 2.15% of the home loan. It changes based on downpayment, military status, and the number of uses, so look closely at the funding fee. The funding fee link is near the bottom of the page.
Keller Williams Realty Coastal Area Partners
Office: 912-356-5001
Cell: 912-308-2699
cpower21@gmail.com
www.westchathamhomes.com
Copyright ©2008 Christy Powers
This is a personal blog representing my
personal views and opinions.
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