I cover the basics of the pre-approval process (and determining how much you can afford) in a free, monthly webinar. It's 15-mins long and the next one is on May 5. The link to register is below and we'd love to have you join us.
This questions should be addressed from at least 2 points of view 1) From a lenders point of view regarding qualifications, and 2) even if you qualify for a higher amount, you may feel more comfortable having a lower monthly payment, and choose accordingly. Please let me know if you would like a referral of a good lender.
I always tell my buyers...Step 1-get pre-qualified. It will cost you nothing and you'll get a good idea of what you can afford. When the loan officer pulls a credit report (required for a pre-approval) you can identify and work on any issues that need to be fixed before actually purchasing.
An experienced real estate agent will work in tandem with your loan officer to ensure your offer is as competitive as possible yet doesn't leave you scrambling for extra cash to close the deal.
Trusted Loan Officer
tel (530) 821-2211
mobile (530) 713-9852
fax (530) 822-0601
1103 Butte House Road, Suite D-Yuba City, CA 95991
Evergreen Home Loans
See "ACTIVE" listings for sale in real-time in San Francisco
$$ BUYER COMMISSION REBATE 50-60% / SELLER DISCOUNT 50% $$
Flavio Tejada, Owner/Broker, Realtor, MBA-Finance
Sr. Mortgage Banker
NMLS # 659743
A first important step in the home buying process is to go through the pre-approval process. This will really help you understand what you are qualified to buy, but also what you are comfortable buying. Lending will be slightly different when looking at condos vs single family as well, so talking with a lender is very important.
If you need a referral to a mortgage broker, I would be happy to send you a couple of referrals.
Hope that helps!
Alain Pinel Realtors
The answer to your question can only be determined by meeting with a financing professional to review your credit score and financial capacity.
There are three levels/types of "Pre-Approval". There are key differences between a "Pre-Qualification", "Pre-Approval" and what I call a "True Pre-Approval". In order to be BEST PREPARED I would recommend a "True Pre-Approval". Please see: http://www.Steven-Anthony.com/GettingStarted for a full run-down on your options.
Here's another important point regarding where to obtain your "True Pre-Approval":
"Retail Banks vs. Mortgage Broker/Bankers":
http://=www.trulia.com%2Fvoices%2FFinancing%2FCan_anyone_tell_me_wh target="_blank" rel="nofollow">http://www.trulia.com/voices/Financing/Can_anyone_tell_me_wh
Begin by analyzing your monthly budget accounting for all income and expenditures. Believe it or not, many people just get their check and spend it with little regard for where the money is going. Help yourself by reviewing and updating your budget....
We deal with several such lenders and would be happy to give you a recommendation. Call or email me at your convenience and I will be happy to share.
Lance R. King – Broker/CEO
King Realty Group
BRE # 01384425
415.722.5549 - Cell
As a general rule of thumb, your Housing Expense Ratio, which is principal, interest, taxes and insurance shouldn’t be more than 25% to 28% of your pre-tax monthly income. Fannie Mae and Freddie Mac's automated underwriting systems will approve higher Housing Expense Ratios.
Your Debt-to-Income Ratio should be no more than 36% of your pre-tax monthly income. This is the ratio between how much you owe and how much you earn. By the way, most lenders will accept a 43% to 45% Debt-to-Income Ratio. And there are a few that will accept even higher ratios.
“Qualifying for” and ”can afford” are two different things. Shopping for a home within your budget will save you a lot of heartache now and in the future.
If you’d like help determining how much mortgage you can really afford, I suggest you speak with a mortgage professional.
C2 Financial Corporation
2845 Moorpark Avenue, Suite 209
San Jose, CA 95128
The best thing to do is sit down with a mortgage broker/ bank and discuss your specific situation. Have them run credit, look at income and debt and determine with you what a comfortable payment would be. This will give you a clear understanding of how much home you can afford. Sometimes you can be approved for higher than what a comfortable monthly payment would be for you.
If you need recommendations for lenders I would be happy to provide them to you. You can call/txt me at 415.336.8191 or email me at firstname.lastname@example.org
Email me for any other questions: