Price range questions!

Asked by Travis, Dover, NH Thu Nov 15, 2012

Even before i get pre-approved, are there any tips to looking for a price range? I look at the estimated monthly payments and they're cheaper than rent!

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Tammy Hayes, Agent, Port Charlotte, FL
Tue Oct 29, 2013
If you’re considering the purchase of a new home, you may be concerned with the issue of finance. Attaining the right mortgage is a key step in the home buying process, but it doesn’t have to be a stress-inducing one. Most lenders offer prequalification, pre-approval or both to help you know where you stand. Let me explain the difference between prequalification and pre-approval:

•Prequalification: Prequalification is a preliminary estimate of how much you can afford to pay for a home based on information you provide. Because credit and employment information aren’t validated for prequalification, it can only be considered a rough idea of a monthly mortgage payment and loan size. This can be a useful guide as you begin the home buying process, however.

•Pre-approval: Pre-approval is a written commitment from a lender to finance your home purchase up to a set amount. This indicates that the lender has taken a close look into your financial history and has agreed to lend you a specific amount of money, reliant on certain details like a finalized sales contract and professional inspection. Pre-approval indicates to sellers that you are a serious homebuyer.Regardless of which option you utilize, or even if you take both steps, you’ll be able to shop with much more confidence. Why wait until you find the perfect home to discover problems with obtaining a mortgage?

Tammy Hayes, Realtor
Re/Max Palm Realty
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Peggy Carter, Agent, Dover, NH
Tue Oct 29, 2013
Honestly even before you get pre approved you should have some idea of how much you want to spend on your home. You truly know what you can afford. Most times a lender will approve you for an amount that will make it tight for you. Be reasonable and know how much you really want to spend with all of your expenses. Good Luck, Peggy 603 396 2938.
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Scott Godzyk, Agent, Manchester, NH
Fri Nov 16, 2012
The best tip is to get pre-qualified first. There is no use looking into any price range until you first know you can get a mortgage and then need to know the amount you are approved for to be able to look in the correct price range. Having a good buyer broker can sure assist you in guiding you through the looking and offer process.
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Marty Patrizi, Agent, Dover, NH
Thu Nov 15, 2012
Travis, as others before me have stated, getting pre-approved for a mortgage is the very first step. You have to know what your limit of purchase power is so you don't waste precious time. The most important factor though is to know what you are comfortable with. There are lots of free mortgage calculators on line where you can get a pretty good idea of what your monthly payment will be with respect to principal, interest, insurance, and taxes and your lender will help you with a budget so you'll know how much money will be left over at the end of the month after all your bills are covered. Your home should not become your prison. You will want to go to the movies or out to dinner once in a while. Enjoying life is paramount and besides, you'll want to buy your significant other a nice birthday or Christmas present. Hope this is helpful to you.
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Travis Fleury, , Dover, NH
Thu Nov 15, 2012

I'm sure you can understand the value in using a local lender in the same town where you live. In fact, I've seen sellers agent's before reject offers outright for people who are not using a local lender who is familiar with the market you're buying in. I'm familiar with some of the regulations in Texas, as that's where our Home Office is, but things are different in many ways up here in New England. The truth is, that when you're submitting an offer, its very important that your pre-approval letter be specific to the property you're buying, either by way of showing the property address, or your offer price. You wouldn't want a seller to know that you're pre-approved for $400K if you're only offering them $200K, would you? Our customer service survey results are 4.9 out of 5 on average, and we have never had a problem with any pre-approval letters. I encourage you to read our testimonials before considering an out of state lender.

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Travis Fleury, , Dover, NH
Thu Nov 15, 2012
Hi Travis,

I agree with what the agents below said as well. I speak with many buyers who "think" they know what their price range is, only to find that they are qualified for much more, or occasionally much less. The reality is that in this day and age, despite all the hype about how hard it is to get a mortgage, most of my clients end up pre-qualified for much more than they would feel comfortable paying for a mortgage on a monthly basis. I'd be happy to chat with you and go through a pre-qualification if you have some time this week. My office is right downtown Dover, but we can very easily complete a prequalification for you right over the phone in about 10 minutes. I look forward to hearing from you!

Travis Fleury
Envoy Mortgage
603.749.5626 x104
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Tracey Langd…, Agent, Stratham, NH
Thu Nov 15, 2012
I agree with Dominic. No use getting your heart set on something that you like only to find out you can't afford it.

Get your Pre approval 1st then go looking. I'd be happy to help you find something within your price range.

Tracey Guy
The Gove Group
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Dominic Noce…, Agent, Westlake Village, CA
Thu Nov 15, 2012
Travis - You must get pre approved by a lender to know for sure what price range you can afford. Don't waste your time looking at properties you can't buy. It's good feeling when you know this in advance so then whatever you look at you most likely will be able to write an offer on it.
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Thank you!
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