How much can you qualify for?
When you are considering buying a home, you're likely to have many different feelings - excitement, confusion and anxiety. Don't worry – you’re not alone!
But, how can I determine what loan amount I will qualify for? This may be easier to determine than you may think. Your lender can usually help you determine the maximum mortgage amount for which you could qualify within minutes based on your income, your debts, estimated down-payment, and credit score. This is not Rocket Science. Have them email you a pre-qualification letter.
But, why do I want to get a pre-qualification letter? The most important beneficiary, of course, is you. Getting prequalified for your mortgage is an important step before you shop for a home.
First, it assists you in knowing what price range home you should be considering. That may be more or less than you think.
Second, it helps the agent to show you the correct homes that fits and less time pursuing dead ends.
Third, it helps you leverage your offer with the seller. The seller may be willing to take less if he knows he has an offer from a qualified buyer.
Yes, prequalifying for your mortgage is the first step in the home buying process.
What if you are renting?
If you are renting and paying $700/month, you could be buying a home for about $1200 /month and when you include you tax deductions and expected appreciation, you could possibly be at an actual $700/month cost.
It is really nice to get that extra tax refund at the end of the year. Also, appreciation dollars are often tax-free when you sell a house. Why rent when you can buy. Of course, always check your personal figures with your accountant. |
