You just made the decision to buy a new home , and you’re ready to get started. But what should your first move be? Your instinct is likely to look at homes in your target neighborhood with a price point that you think you can afford. You get knee-deep into listings and you’re ready to go look at your first house when reality sets in: you really don’t know what you can afford.
Before this happens, be proactive and determine your “all-in” budget, the anticipated monthly cost of your mortgage and other expenses. The good news is that it’s quick to get this information.
Many borrowers sail through the application process because they do their homework ahead of time and find the right home loan. Not only is the application process easier, but also a borrower with a home loan selected is more attractive to home sellers in the bidding process.
How do you find a home loan?
Many institutions offer home loans. Typically, the lender asks for a general statement of income, assets and debts. With the information you provide, the lender then estimates how much you could likely borrow at today's interest rates. This is a ballpark figure and it’s subject to further verification and documentation. The lender then provides a letter showing the amount of financing you may be able to receive.
While finding the right home loan doesn’t give you the final amount of your loan, it’s a reliable way to start your home search, giving you, your agent and the seller confidence.
Find a home loan and become empowered with the information that will help streamline your home search.