Before you begin searching for a home, you need to determine how much you can afford. You may be able to afford more or even less than you think. The lender is willing to loan you money based on your income and the amount of down payment you have.
Prequalification can:
Determine How Much You Can Afford
Prequalification helps you avoid buying more home than you can afford or being disappointed if you don't qualify for as much as you thought.
Show You What Your Down Payment Could Be
You'll have a general idea of what your monthly principal, interest, taxes and insurance (PITI) payment will be.
Identify the Loan Programs You May Qualify For
With the wide variety of loan programs available, it's important to know which types you qualify for and which will suit your needs.
At this point, your Loan Officer can also help you determine alternatives and strategies that could help you buy the home of your dreams. These may include:
- Special First-Time Homebuyer Programs
- Co-mortgagor Financing
- Low Down Payment Programs
- Your Employment History and Income
- Your Monthly Debts and Obligations
- The Amount and Source of Cash for Down Payment and Closing Costs
After completing our Free Mortgage Loan Analysis, which allows for a better understanding of your financial profile, your Loan Officer will discuss different financing alternatives with you. By going through the prequalification process before shopping for a home, you can save yourself time, energy and frustration because you’ll know from the start how much you can realistically afford.
