Based on your example, the numbers work like this:
Purchase Price: $300,000
Down Payment from YOU: $60,000
Mortgage Loan needed to complete your purchase price of $300,000: $240,000 ($300,000 minus your $60,000)
You should definitely get yourself in front of a Local Mortgage Banker now to get thoroughly Prequalified, even if you're not planning to shop until later in the year. You want to be certain now that you are ready, steady, GO for a mortgage loan and you don't have to take any actions to correct problems that could prevent a successful loan approval (750 credit score and 20% Down payment does NOT guarantee a loan approval; too many variables in this difficult lending environment).
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You can start looking anytime to get a feel for what you want but generally within 60 - 75 days of your desired move date will allow you to see the most inventory. You can get pre-qualified anytime but don't need to go through to full loan approval until it is time to buy. It is good to have this information up front so you can be sure you are searching in the right price range. A good mortgage consultant can also help you calculate payments by area to give yoy a feel for monthly mortgage payments. Best of luck!
Loan approval letters are normally valid for 90 days. Based on your informatoin it sounds like you are looking for a conventional loan. I would suggest you start making contacth with loan officers now and begin a primarily housing search, unless you have a specific property that you have in mind.
When your loan amount is calculated, it is based on the sales amount minus your downpayment. So if you are buying a $300K home and put down $50K, your loan amount would be $250K. Please take closing costs you have to pay into consideration when you are deciding how much you want to put down on the property.
If that is the time you want to move, shopping now is a waste of time. Rates will have gone up by then most likely as they are trending up now..We are not at our low point any longer, and rates have gone up and I believe will continue going up as the stock market rebounds like it has..and prices are going up too..and will continue to go up as the housing market heats up this spring. If you want to beat those 2 trends and get more home for your $, you should think to buy sooner than later. I would be happy to help you with your home purchase and can suggest a good loan officer for you to talk to who can give you good advice on whether you should even be putting down that much $..You don't have to put down 20% to buy a home and it may be wiser for you to put down less...A loan officer can help you determine what would be in your best interests. Give me a call or email if you would like my further assistance. 410-703-4585 ..firstname.lastname@example.org
I'll be happy to discuss your options with you. Feel free to call me at 410-960-3272 or email me at email@example.com. It is best that you start the mortgage process as early as possible so that we can maximize your credit scores and ensure that you're absolutely ready when the time comes to write a contract.
You should get prequalified for a loan before you start house shopping.
There will also be closing costs which include loan origination, transfer tax, property tax etc..ask your lender for a good faith estimate so that you have a solid idea of what your total costs will be.
Sometimes all or a portion of closing costs being paid by the sellers can be negotiated into the contract.
The downpayment reduces your loan amount and therefore your monthly mortgage payment. With a 20% downpayment you can also avoid any mortgage insurance premiums (MIP) which might otherwise be due.
It is never too early to pre-qualify for the mortgage loan. Sounds like you will be just fine. We have great lenders that can assist you in just a few minutes on the phone.
For a timeline for purchasing you can start anywere for 60 - 90 days before your desired move-in date.
Visit us on line to view all available homes and let us know if we can help you find your new home.