Sizing up your finances early can prepare you to find the best home loan. Use a few standard guidelines to gauge your homebuying power:
____________ Estimate two and a half times annual income. ____________ Calculate 28% of before-tax income for monthly housing debt (mortgage payments, property taxes,insurance and any maintenance costs for a co-op or condominium). ____________Get a rough estimate of how much you can afford now with our How Much Can I Borrow? Calculator. ____________Start gathering relevant financial papers needed for your application and be one step ahead of the game.
2. Get Pre-Approved
A pre-approval is a letter from a lender to give homebuyers a specific loan amount and loan type. You can get pre-approved before or after you have found a home to buy.However, many buyers find that they have increased negotiating clout if they are already pre-approved when they conduct their home search.
House hunting can be fun and exciting, but you have to do some homework to find the right home for you.
___________ Investigate neighborhoods and schools. ___________ Conduct a cost-of-living comparison if planning to buy in a different geographical area. ___________ Prioritize desired home features. Get started with our Wish List ___________Choose a realtor ___________ Make an offer and negotiate a final price. ___________ Have the home inspected.
4. Close the Purchase
If you’ve followed the steps above,these final stages of the home purchase should go smoothly:/p>
__________ Find the best mortgage in houston for you. __________Organize your documents and information before you apply. Follow our post: How to get a Mortgage Loan in Houston __________ Apply for a mortgage formally to obtain a mortgage commitment letter. For homebuyers with pre-approvals,this will be a formal application. __________ Close the loan. A realtor,settlement agent,or attorney generally walks homebuyers through the process of meeting contract contingencies and scheduling settlements. __________Move in and celebrate