How much home can you afford?
• Is a consultation with a lender to determine your purchasing power. The lender will review the best loan option for your situation.
• The lender will perform a credit check, asset/debt status
• Your pre qualification gives you a quick assessment of the price range of homes to be considering
• Is a firm decision in the type of loan you will be given for the purchase of your home.
• Your pre-approval strengthens your bargaining position in the buying process.
Keep in mind that many people are pre qualified or pre approved for much more home than they can afford. Make sure you secure a house payment that is within your budget.
Two popular types of mortgages
Fixed Rate Mortgages
• Have the same interest rate for the entire term of the loan
• Payments are stable and predictable
Adjustable Rate Mortgages (ARMs)
• Have interest rates linked to a financial index that changes periodically over the life of the loan
• Initial payments may be lower, making the ARM more affordable
There are hundreds of loan products available today. A reputable loan officer can help you select the right loan product for you.
Applying for a mortgage...
The lender may request copies of:
• Current pay stubs
• Bank statements
• Credit card statements
• Investment/brokerage firm statements
• Loan statements
• Tax return