A lender’s prequalification process will give you a ballpark estimate of how large a mortgage you can afford. It doesn’t matter which lender you obtain this from since nearly all of them use the same criteria when determining what size monthly mortgage payments, property tax bill, and homeowners insurance you can handle. This will give you a good idea of the maximum mortgage amount you can afford and will help you focus your house search on properties within your price range.
Lenders, real estate agents, online financial Web sites, and other resources all use pretty much the same formula to figure out what priced home you can afford. You’ll want to figure this out before you start house hunting, since your budget can have a significant impact on your new home’s size, style, and age. The more amenities and square footage a home has and the newer it is, the more expensive it will be. By obtaining a mortgage prequalification letter prior to embarking on your house hunt, you’ll have a much better idea of exactly what you can afford.
No comments:
Post a Comment