Financing Your New Home

Financing Your New Home

Pre-Qualification and Pre-Approval

Brenda Miller

Senior Mortgage Loan Originator

NMLS #455100, GA MLO #34074, FL MLO #30626

Office: (770) 279-0222 Ext. 348

Cell: (706) 612-4646

Fax: (770) 279-9141

Email: Brenda.Miller@SoutheastMortgage.com

Many buyers apply for a loan and obtain approval before they find the home they want to buy.

FREE LOAN ANALYSIS

IMPORTANT READING!  TEN COMMANDMENTS WHEN APPLYING FOR A MORTGAGE

Why?

Pre-Qualifying will help you in the following ways:

 

  1. Generally, Interest rates are locked in for a set period of time.  You know in advance exactly what your payments will be on the offers you choose to make.
  2. You don't waste time (remember our savings of 30 to 40 hours) making offers on homes that you can not afford.
Pre-Approval will help in the following ways:
  1. A seller may choose to make concessions if they know that your financing is secured.  A pre-approval essentially makes you a cash buyer and this will make your offer much more appealing to a home seller.
  2. You can select the BEST loan package or product without any pressure to do it quickly.
HOW MUCH CAN YOU AFFORD?
There are three factors to consider:
  1. Down Payment.  VA loans require no down payment, FHA loans require 3.5% down payment and conventional loans require 20% down payment.  
  2. Your ability to qualify for a mortgage based on your financial position and credit report.
  3. The costs to close on your new loan, also referred to as closing costs.  These costs can vary and generally range from 2 to 5% of the purchase price.
QUALIFYING FOR A MORTGAGE
Most lenders require that your monthly payment range between 25-28% of your gross monthly income.
  Your mortgage payment can include the following
  1. Principal on the loan or "P"
  2. Interest on the loan or "I"
  3. Property Taxes or "T"
  4. Homeowners insurance or "I"
"PITI" and all of your debts 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
  • Debt
  • Property value
To see how much you can afford, contact our Preferred Mortgage Professional 

Contact Information

The Payne Group
Keller Williams Success Realty
309 Richard Jackson Blvd, Suite 200
Panama City Beach FL 32407
MOBILE: (850) 392-1770
Fax: 888-753-0010