Determine "How Much Home You Can Afford?"
What is Pre-qualification?
Pre-qualification is an informal discussion between a lender and you. The lender estimates the amount that you can borrow based solely on what you tell them about your income and assets. The lender does no verification and is not bound to make the loan when you're ready to buy.
However, understanding your position with "how much home you can afford" will help you in determining what price range you can use to start your home search. This will prevent you from the disappointment of finding a home of your dreams only to find out that it is not within your affordability price range. So before you begin your search let's first use our "Affordability Calculator" to assist you in determining just how much you may qualify for by clicking here.
Note: If an income or expense field does not apply to you, please leave it blank. All dollar figures should be entered in a monthly time period (i.e. if you earn $48,000 a year, place 4000 in the Salary field). This utility will give you an estimated mortgage payment for which you may qualify.
Why is Pre-approval Better?
To a seller, a lender's pre-approval letter is considerably stronger than a pre-qualification letter. Loan pre-approval is based on documented and verified information regarding your employment, your income, your liabilities, your assets and the cash you have available to close on a home purchase. If a seller knows your financing is secure, your offer is stronger. Pre-Approval also gives you peace of mind as you shop for a home, knowing that you will qualify for the required mortgage amount.
Contact our Mortgage Partner, Coldwell Banker Mortgage, to work on getting pre-approved!
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