Obtaining Mortgage Pre-qualification And Pre-Approval

By
Real Estate Agent with Keller Williams Realty North Atlanta Real Estate Lis. # 272855

Obtaining Mortgage Pre-qualification And Pre-Approval

Many buyers apply for a loan and obtain approval before they find the home they want to buy. Why?

 


Pre-qualifying will help you in the following ways:
1. Generally, interest rates are locked in for a set period of time.
2. You will know in advance exactly what your payments will be on offers you choose to make.
3. You wont' waste time considering homes you cannot afford.

Pre-approval will help you in the following ways:
1. A seller may choose to make concessions if they know that your financing is secure. You are like a cash buyer, and this may make your offer more competitive.
2. You can select the best loan package without being under pressure.

http://northatlantaluxury.com/

How Much Home Can You Afford?

There are three key factors to consider:
1. The downpayment
2. Your ability for a mortgage
3. The closing costs associated with your transaction

Down Payment Requirements

Most loans require a down payment of 3.5% to 5.0% depending on the type and terms of the loan. If you are able to come up with a 20% to 25% down payment, you may be eligible to take advantage of special fast track programs and possible elimination mortgage insurance.

Closing Costs

You will be required to pay fees for loan processing and other closing costs. These fees must be paid in full at the final settlement, unless you are able to include them in your financing. Typically, total
 closing costs will range form 2% to 5% of your mortgage loan.

Qualifying for the Mortgage

Most lenders require that your monthly payment range from 25% to 28% of your gross monthly income. Your mortgage payment to the lender includes the following items:
1. the principal on the loan (P)
2. the interest on the loan (I)
3. property taxes (T)
4. homeowners insurance (I)

Your total PITI and all debts (from installments to revolving charge accounts) should range from 33% to 38% of your gross monthly income.

These key factors determine your ability to secure a home loan:
1. credit report
2. assets
3. income
4. property value

For more information on Financing and Mortgages and Relocating to North Atlanta, Georgia click HERE.

http://northatlantaluxury.com/


Now that you know about Obtaining Mortgage Pre-qualification And Pre-Approval, your ready to purchase your North Atlanta home, contact your North Atlanta Luxury real estate team - The Mary Ellen Vanaken Team of Keller Williams. 5780 Windward Parkway, Suite 100, Alpharetta GA 30005 www.northatlantaluxury.com

http://northatlantaluxury.com/




Obtaining Mortgage Pre-qualification And Pre-Approval

Posted by

Mary Ellen Vanaken

The Mary Ellen Vanaken Team of Keller Williams Realty

678.929.6529

mary@mevhomes.com

Comments (2)

Joe Jackson
Keller Williams Capital Partners Realty - Columbus, OH
Clintonville and Central Ohio Real Estate Expert

Getting pre approved from one or two local lenders is a must for any homebuyer. 

Feb 01, 2016 12:10 AM
The Mary Ellen Vanaken Team
Keller Williams Realty North Atlanta - Alpharetta, GA
North Atlanta, Georgia Luxury Home Specialists

Agreed! Thanks Joe.

Feb 15, 2016 03:57 AM