Buying a home can be a complicated process, but there are things you can do to ease some of the stress. Preparation for purchase should begin well before you ever look at a potential property. Important things to consider when purchasing a new home include crime rates, school district reputations, commute times to work or school, availability of public transportation, HOA fees, and, of course, how much you can afford. Obtaining a mortgage pre-approval is the best way to estimate how much you can finance for a new home.
Know Your Purchase Power
Determining your budget can be difficult if you plan to finance a purchase. Without knowing the exact term and interest rate you’ll be paying, you can’t accurately calculate the total purchase price you can afford. A mortgage pre-approval letter will tell you what a lender estimates they can finance based on your background and credit history. You’ll need to provide the lender with some detailed information about yourself to obtain the pre-approval, including your income figures, credit report and score, and employment history. You won’t have to worry about falling in love with a home you cannot afford as long as you stick to the pre-approval letter’s limit. Read more