How Much Can You Afford?
Before you begin to search for a new home, you need to determine your budget and estimate how much you can afford. One of the most important factors in figuring out your financial budget is getting pre-approved for a mortgage. Pre-approval uses basic information, as well as electronic credit reporting to determine whether a lender will loan you money. If you are pre-approved for a mortgage, the lender has given you a commitment to support your new purchase.Click Here for MORTGAGE PRE-APPROVAL.
Once you have been pre-approved, you need to decide which type of mortgage to get. This decision is usually based on the interest rate of the loan and how much time you are given to pay the lender back.
When you apply for a mortgage, you need to furnish information regarding your income, expenses and obligations. To save time, have the following items available for each borrower:
Two most recent pay stubs
W-2’s for the last two years
Federal tax returns for the last two years
Last two months’ bank statements
Long-term debt information (credit cards, child support, auto loans, installment debt, etc.)
