Before you can go looking for homes, you want to know how much you can borrow. Most people in the U.S. go to a bank or a mortgage lender when they want to purchase a home. A lender can discuss with you the maximum loan you can afford. From there you will know how much you can afford each month for a mortgage payment. The following list is the basics needed to get the pre-approval process starting.
- Stable and Documented Income Verification
- Credit Score / History
- Down Payment (State and National Assistance Programs May Be Available to You)
- Impartial Third-Party Appraisal – your lender will order this for you once you are under contract to buy.
Many consumers over estimate the FICO Score and amount of down payment needed to qualify for a home mortgage loan ~ so don’t make assumptions, get an initial credit review pre-qualification.
We are happy to refer you to one of our preferred lenders who will review your credit to give an estimate of what you may be able to afford, to see if there are any obvious “red flags” that will require corrective measures and to assess whether you may qualify for National or State funded down payment assistance grant programs. They will also explain the different types of financing available based on your circumstances. Alternatively, if you have a lender that you prefer to work with we are happy to collaborate with them on the transaction.