 |
 |
 |
etermining how much you can afford
before you begin your |
| home search will save you valuable time. |
 | Prequalifying for a mortgage generally helps
you determine how much house you can afford.
|
| Most lenders require that your monthly
mortgage payment, including principal,
interest, taxes and insurance, range between
25 and 28 percent of your gross monthly
income.
|
| Remember, becoming prequalified does not
necessarily mean that you will be approved
for a loan of that amount.
|
| Preapproval from your lender means that you
have provided them with the necessary
paperwork, and they have approved your
actual loan amount.
|
| Having preapproval for a home loan will put
you in a much better negotiating position,
because the seller knows that you are able
to obtain your loan to purchase their home.
|
|
|
Most lenders require a 5 to 20 percent down
payment; 25 percent or higher down payment may
qualify you for a lower percentage rate.
I can help you locate a lender who will
assist you in finding a financing package that
best meets your needs. |
