Whether you’re a first-time homebuyer or a seasoned real estate investor, buying a home is an exciting process. However, there’s also a lot to consider when you decide to buy. So before you begin your search for the perfect property, schedule your complimentary buyer consultation.
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frequently asked questions:
What services are provided by a buyer’s representative?
– Helping you clarify your priorities.
– Suggesting sources of financing and other service professionals, such as inspectors and exterminators.
– Providing sources of accurate and lawful information on neighborhoods, schools, and communities.
– Selecting and arranging property showings.
– Evaluating particular properties.
– Explaining forms and agreements.
– Suggesting contract contingencies to protect you, rather than the seller.
– Assisting in the negotiations for a favorable price and terms.
– Keeping all information confidential that could weaken your bargaining position.
– Monitoring the entire purchase process, assisting with issues that arise through closing.
Will I pay more to be represented as a buyer?
In the vast majority of cases, the answer is no. When a house is listed for sale, the seller’s contract spells out the commission rate that will be awarded to a buyer’s representative. This is known up front and typically covers all, or at least most, of your representative’s compensation.
How much house can I afford?
When evaluating how much you can afford for your home and mortgage, lenders usually use two rules of thumb:
1. Your maximum monthly mortgage payment should not exceed 28 percent of your gross (pre-tax) income.
2. Your maximum debt load, including your mortgage payment, should not exceed 30 percent of your gross income.
These ratios are typical of those required to secure a conventional mortgage. Lenders will be able to supply details about other types of mortgages, such as FHA or VA loans, which offer more flexible qualification standards. There are many types of mortgages and financial tools available that provide flexibility in interest rates, terms, and down payment requirements.
What’s the difference between being pre-qualified and pre-approved for a mortgage?
Typically you will first pre-qualify for a mortgage, then get pre-approved before you have found the specific home you wish to purchase. What is the difference?
Pre-qualification: An informal determination by a lender or mortgage broker stating how much mortgage you can afford.
Pre-approval: A guarantee in writing by a lender to grant you a loan up to a specified amount.
What documents do I need to prepare for a Home Loan Pre-qualification?
- 2 year tax returns including W2’s
- Bank statements for 2 months
- Paystubs for 1 month
- ID and social security card