The first thing you need to do is see a mortgage banker or broker and get yourself pre-qualified. In order to do this you will have to bring your last two years tax returns and/or W-2's, last three months bank statements plus you have to allow them to do a credit check. In most cases you can go with as little as 3.5% down if you want, but you have to be able to qualify and afford the monthly payments.
These days, if you were to get a thirty year fixed mortgage, you may be able to get a rate as low as 4.75%. With this type of mortgage you will be paying about $525.00 per month for every $100,000.00 you borrow. Hence, if you borrowed $300,000.00 with this type of mortgage, your monthly mortgage payment would be $1,565.00. Then you have to add to that real estate taxes, insurance and private mortgage insurance (PMI: required if down payment is less than 20%). When you add all that together, your monthly living expense will be about $2,250.00. If that is too high for your budget, you can borrow less, let's say $200,000.00 and your monthly living expense would be about $1,600.00.
When you get yourself pre-qualified you will know exactly how much you can borrow and how much you will pay every month. Then you can go out looking for a property that fits into your budget and hopefully meets all your needs.
If you need further assistance, please fell free to call me. Good luck!
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
First, I suggest you give me a call when its convienient for you. When you call please ask for myself Charlie Cruse or Judy Santiago.
We specialize in helping people via counceling,mortgage affilliates, Insurance, home inspectors,Attorneys and more thru our business network attained over my 25 year real estate career.
We are simply "People helping people"
I look forward to hopefully the opportunity to serve your real estate and mortgage needs.
Signature Realty Consultants
"People helping People"
The first thing is to go to the bank your doing business with and get qualified. They will be able to tell you how much they are willing to lend you.
Step 2 search for a home inspector, have him go through the house to see if there is anything you need to fix.
This may help you in deciding how much you should offer.
Step 3 make a reasonable offer, do not insult the owner, you don't want to be out before you get in.
First thing you should do is contact a local lender to see what you qualify for. The lender will let you know your price range - which you need to know before you begin your search. Once you have done this, ask the lender for a pre-qualification/pre-approval letter. Most sellers in today's market want a pre-qualification/pre-approval letter submitted with your offer when you make one. This will also raise the chances of your offer being accepted by the seller.
Please see my blog for tips one ggting a mortgage.
It's more or less an interview process where you will be going over your employment history, income, where you've lived for the past 2 years, as well as discussing what your monthly payments are, what you would find to be an affordable monthly payment, how much of a down payment you want to put down, how much in savings/checking/retirement you have, what your credit scores are and what is on your credit ... so it's good to be prepared with that knowledge ahead of time - you can get your reports for free at http://www.annualcreditreport.com but it doesn't give you your scores.
The interview could be done in person or over the phone, I do not recommend just simply completing a loan application and sending it in - there is very little communication/human interaction that way and it is a sure fire way to get an inaccurate pre-approval.
Once you have been thoroughly pre-approved then you'll be in a good position to make an offer with mortgage financing. You can read a more detailed explanation of the process in a blog entry at: http://www.trulia.com/blog/shanethemortgageman/2011/05/the_m
Let me know if you'd like any help.
If you aren't buying a home with mortgage financing, and have the luxury of paying for it with cash, then you can bypass the whole mortgage deal and talk directly to a real estate agent about making an offer.