Though you may be willing to spend a certain amount, the real determination of how much house you can buy is driven by how much a lender calculates you can afford. Gone are the days when “creative financing” could be used to manipulate your credit worthiness or your ability to buy a home. Government regulation and guidelines are specific and unavoidable. There is little flexibility in lending today, though there are still a few programs that give you some wiggle room.
|The Preapproval Letter|
|Pre-qualification is not only recommended as a power tool in your favor, but a Pre-Approval form is actually required to accompany your offer to purchase.
Preapproval also gives you a very good indication of:
To become pre-approved you will need to provide a lender with the following:
Pre-Approval letters are not binding on the lender, they are subject to unknown factors and appraisal of the home you want to purchase, and are time sensitive. If your financial situation changes, interest rates rise or a contracted date passes, the lender will need to review your situation and recalculate your maximum mortgage amount accordingly.
Additional Resources for Home Buyers
- A Heads Up for Home Buyers
- Being Prepared
- For First-Time Buyers
- How Can I Help You?
- Do You Need a Buyer Agent
- Buyers Frequently Asked Questions
- Understanding Your Credit Score
- How Much Should I Offer?
- Offers and Purchase Agreements
- Who Pays for What?
Bill Salvatore Realtor / Veteran Arizona Elite Properties 602-999-0952 eMail: firstname.lastname@example.org