We’re not lenders and the industry’s regulations are ever-changing. It’s vital to have proper guidance from a local and reputable lender. Lending is one piece of the puzzle that can screw up your purchase and it can happen late in the process. We wont start looking until you get pre-approved for a loan and know what you are comfortable spending.
Remember, unless you’re a hermit and never plan to leave your home (not that there’s anything wrong with that), we never condone being house poor. Use the following tools to estimate what you’re comfortable spending, then speak to a recommended lender for pre-approval.
Pre-qualification is an estimate of how much you can afford in a mortgage payment. It is based upon the information you provide, and is subject to the approval process, including further details such as a credit report, appraisal, and income verification. The information you provide won’t be verified as part of the pre-qualification process.
Pre-approval is a firmer commitment on behalf of the mortgage company and is a more formal process which includes a credit check and even an employment verification. During a pre-approval the mortgage company does all the work of a full approval, except for the appraisal and title search. A credit report will be obtained by the lender to verify your monthly payments on installment loans and credit cards, and to check whether you have a history of making your payments on time. You will also need to provide pay stubs and W-2 forms (or tax returns if you are self-employed), plus statements from savings and investment accounts to verify your assets. If you’ve been pre-approved for a loan, you can shop for a house with more certainty and less anxiety because you won’t be going through the whole process worrying about your mortgage
|Monthly Gross Income||$|
|Monthly Debt Expenses [?]|
Monthly Debt and Obligations Should Include: