The true beginning of your home search
The true beginning in looking for a new home begins with understanding your purchasing power. It begins with knowing how much you have in savings if you currently do not own a home, or how much your present home is worth – so that you know how much equity you have. This equity will be used as part of the down payment and closing costs for your new home. This is best done by finding a Realtor who will assist you by presenting you with a Comparative Market Analysis of your home and giving you an estimate of closing costs on the sale.
Knowing how much money you have available for the down payment and closing costs for your purchase, will be essential in the most important step in the process – speaking with a competent, experienced and diligent loan representative.
Your lender or mortgage broker will ask you for additional information to complete his/her assessment of what loan amount you will qualify for. Knowing what monthly payment is right for you, what affects your buying power what your credit rating is, what your revolving credit debt is, your income, and how long you plan to stay in your new home, determines the loan program that you might choose.
There are many types of loans available today in the mortgage market. It is important to speak with a loan representative who is up-to-date with many different programs and is willing to fit YOU to the loan and NOT their loans to you. Your affordability can vary by tens of thousands by just looking at options other than a 30 year fixed rate loan.