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Financial Information
When buying a home, it is helpful to determine the type of home you'll like and how much you can afford before beginning your search. Most lenders allocate approximately 28% of your GROSS MONTHLY INCOME to housing expense. Housing expense includes principal, interest, taxes and insurance (PITI). To get an idea of how much you can afford to pay each month for a home, multiply your gross monthly income by 28%.
When coupled with current outstanding loans, the total for your debt service should not exceed 36% of your gross monthly income. Some lenders may have slightly more liberal requirements or loan interest rates which may increase your purchasing power.
PRE-APPROVAL
Most mortgage lenders take the guess work out of applying for a loan by figuring out for you the amount you can afford to borrow. Then, they give you a printed document stating the maximum mortgage amount you qualify for based on your particular finances and income.Mortgage pre-approval establishes your price range and strengthens your buying position by letting the Seller know that you have already been approved for the loan. It can also ease time constraints once the purchase agreement is signed between Buyer and Seller.
Should You Get Pre-Approved for a Loan First?? Most Definitely!!
How we can help you…
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Inform you about the different financing options available, and which one is most suitable for you.
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•Work with you to determine how you can pay the least amount of interest over the term of the mortgage.
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•Help you save thousands in Interest over the life of the mortgage .
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•Introduce you to special programs offered by some lenders for different categories of borrowers.
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Help answer the question, "Should I buy or rent?”
