Many buyers apply for a loan and obtain approval before they find the home they want to buy. Why?
Pre-qualifying will help you in the following ways:
1.Generally, interest rates are locked in for a set period of time. You will know in advance exactly what your payments will be on offers you choose to make.
2.You won’t waste time considering homes you cannot afford.
Pre-approval will help you in the following ways:
1.A seller may choose to make concessions if they know that your financing is secured. You are like a cash buyer, and this may make your offer more competitive.
2.You can select the best loan package without being under pressure.
How Much Can You Afford?
There are three key factors to consider:
1.The down payment
2.Your ability to qualify for a mortgage
3.The closing costs associated with your transaction.
Down Payment Requirements:
Most loans today require a down payment of between 3.5% and 5.0% depending on the type and terms of the loan. If you are able to come up with a 20-25% down payment, you may be eligible to take advantage of special fast-track programs and possibly eliminate mortgage insurance.
You will be required to pay fees for loan processing and other closing costs. These fees must be paid in full at the final settlement, unless you are able to include them in your financing. Typically, total closing costs will range between 2-5% of your mortgage loan.
Qualifying For The Mortgage:
Most lenders require that your monthly payment range between 25-28% of your gross monthly income. Your mortgage payment to the lender includes the following items:
-The principal on the loan (P)
-The interest on the loan (I)
-Property taxes (T),
-The homeowner’s insurance (I).
Your total monthly PITI and all debts (from installments to revolving charge accounts) should range between 33-38% of your gross monthly income. These key factors determine your ability to secure a home loan: Credit Report, Assets, Income, and Property Value.
A strong and genuine belief in the "customer for life" principal of doing business is what fuels our team and our company. Referrals from previous customers and local real estate professionals have always delivered the majority of the Company's production.
We treat each customer as an individual, not another number. We will walk with you every step of the way until your needs are met and your loan is completed. We take pride in providing our services with integrity and accountability.
Shawn K. Milller
VanDyk Mortgage Corporation
3450 Buschwood Park Drive, Suite 345 Tampa, FL 33618
NMLS# 303855 FL# LO4448
With today's economy the way it is, financing a home is often the one thing keeps potential home buyers from becoming actual home buyers. Money is tight everywhere - and we are all looking for ways to keep afloat. But an investment in a new home is actually an investment in your financial freedom. Most renters are surprised to find that, even today, your monthly payments on a new home are probably much less than what you are currently pay in rent. Current homeowners that are looking to upgrade or downgrade should research their options and take advantage of some historically low mortgage rates and home prices. Hopefully these articles will show you how easy it is to finance your new home in this economy - and help put you on a path to a brighter financial future.
First Time Home Buyers - Learn about your options as a first time home buyer - including the $8,000 Tax Credit which is only available through December 1, 2009.
The VA Financing Option - Learn about what financing is available from the federal government to our US Vetrans.
The FHA Financing Option - Learn about the recently revised FHA loans and how they are making homewonership possible in our current economic crisis.
Finance & Mortgage Calculators
Balloon Mortgage Payment Calculator - Calculate what your monthly payments will be for a balloon mortgage (provided by Moving.om)
Credit Grade Calculator - Get a free estimate of your credit rating (provided by Moving.com)
Upfront Cost Calculator - There are usually upfront costs when securing a mortgage. Use this tool to find out how much your mortgage will really cost (provided by Moving.com)
Mortgage Affordability Calculator - Estimate how much mortgage you can afford based on your income, debt, downpayment, etc (provided my Moving.com)
Qualifying Income Calculator - Determine the income required to qualify for specific loan amounts.