Now
that you have your list of features you want in your new
home, you are ready to start looking! Well, not just yet.
You are going to need to know in what price range to look.
There are two ways to go about this. You can get prequalified
or preapproved for a mortgage. Either way you will need
to contact a mortgage company. We have partnered with Chase
to provide you with some of the lowest mortgage rates available.
We are sure you will find it very easy to begin and complete
the loan process.
There are some key differences between
prequalification and preapproval for a loan that you need
to be aware of. Loan prequalification is a simple process.
It takes into account very basic information regarding your
financial status and gives you an amount for which you may
qualify. This can be done strictly on a verbal level or
electronically over the Internet. The prequalified amount
is based solely on the information you provide. In most
markets, prequalified buyers usually hold little clout compared
to preapproved buyers due to the fact that the information
given during the prequalification process is not thoroughly
investigated and therefore may be unreliable. Where a preapproved
buyer is actually approved for a loan of a certain amount,
a prequalified buyer is only told that they might
be approved for a certain amount.
Preapproval is a much more involved process.
The lender will take all pertinent information regarding
your finances and perform an extensive check on your current
financial status. This will ultimately give you the exact
amount that you will be eligible for (depending on what
type of loan you decide to go with). Being preapproved lets
the seller know that you have gone through an extensive
financial background check and there should be no unexpected
obstacles to buying the home. You can see how being preapproved
would be more attractive to a seller than just being prequalified.
The type of mortgage you apply for will
depend on many factors, but the majority of that decision
will be based on your ability to pay a monthly installment.
If you can only afford a $1000 dollar a month payment, you
are not going to go out and buy a $250,000 home, unless
you have a large sum of money set aside to make a sizable
down payment! Financial planners say that you shouldn't
pay more than 28% of your gross income for housing (that
includes principal, interest, taxes, and insurance). Depending
on your debt to income ratio, that percentage may change.
Once you have determined what you can afford,
the next step is to choose a mortgage plan. There are many
different mortgages out there, so take some time and explore
all of the possible plans for which you qualify. You could
save yourself thousands of dollars in the long run!
Alexis Eldorrado
can save you time and money by being your professional guide
through the entire loan process. She will be able to counsel
you on the advantages and disadvantages of certain types
of loans and help you understand the "real" cost
of a mortgage. Alexis will also act as your personal advocate
and liaison between you and the lender as you proceed through
the approval process and closing by working with your lender
on a regular basis.
equal
housing opportunity